Blackstone, Starwood Kick Off Massive CMBS Sale for Hotel Deal
- $4.65 billion deal finances purchase by Blackstone, Starwood
- Offering is one of the largest single-loan CMBS in a decade
Photographer: Jeff Greenberg/Getty Images
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A joint venture between Blackstone Group Inc. and Starwood Capital Group is financing its acquisition of Extended Stay America Inc. via a massive commercial mortgage-backed securities offering this week, one of the largest single-loan CMBS deals in a decade.
The $4.65 billion so-called single-asset, single-borrower (SASB) CMBS securitizes a loan originated by JPMorgan, Citigroup, and Deutsche Bank to fund most of Blackstone and Starwood’s roughly $6 billion acquisition of Extended Stay’s 560 hotels located throughout 40 states.