Starwood Property Trust, Greenwich, Conn., so far in the second quarter has completed 21 mortgage purchase or lending transactions for a total of $769 million. This brings the real estate investment trust's portfolio to over $2.4 billion.
The REIT originated 78% of the loans and purchased the other 22%.
Included in its second quarter transactions is a $71.5 million mezzanine loan that is secured a 45-property portfolio located in Germany; those properties are leased to Metro Cash & Carry, the largest retail company in that nation. The loan has a loan-to-purchase value of 68.7%, matures in 2017 and should generate an unlevered return of over 12%.
Barry Sternlicht, chairman and chief executive of Starwood Property Trust, said, "I am pleased that the company has added an additional European market loan and continues to creatively source off-market transactions. Our pipeline of opportunities remains robust and while we are not always able to control the timing of the closings of our transactions, we continue to source quality transactions that will create long-term value for shareholders."
The company also highlighted a $175 million first mortgage loan on the International Home Furnishings Center, High Point, N.C. The loan has an LTV of 63% and matures in May 2016. Starwood's expected unlevered return is over 12% for this loan as well.
Starwood also refinanced a $23 million mortgage for the City Club Hotel in New York; it will also provide up to $13 million in construction financing that allows for 66 rooms to be built above the current hotel.
Cushman & Wakefield Sonnenblick Goldman, New York, arranged the loans for the property's owners City Club Hotel LLC. The refi was completed in less than 30 days.
"The availability of creative capital for the hospitality sector continues to increase with each passing month," said Jared Kelso, a Cushman & Wakefield Sonnenblick Goldman senior director. "Their ability to structure a non-recourse construction financing component speaks volumes about the outlook and availability of capital for high quality hospitality assets, particularly in major markets."
