Starwood Property Trust originates $271.9 million in mortgage loans

Starwood Property Trust (STWD) recently originated three separate mortgage loans totaling $271.9 million. Starwood previously sold shares of its common stock for a profit of about $434.8 million, which it used in part to extend the loans. The firm originated mortgage loans for multiple hotels, drugstores and one retail development. Chairman and CEO Barry Sternlicht said his firm is constantly looking for attractive investments to grow its portfolio. “These latest loans add further scale, diversity and safety to our portfolio,” he said. Starwood originated a $206 million loan for 10 full-service hotels throughout the U.S. The loan was structured as one $155 million first mortgage loan, a $37 million mezzanine loan and one $14 million full recourse bridge loan. The first mortgage loan is backed by eight hotels in eight states, consisting of more than 2,300 rooms. The bridge loan is backed by two hotels. The first mortgage and mezzanine loans have an aggregate loan-to-value ratio of 62%, and mature in January 2016. The bridge loan matures in January 2012. Starwood expects a 12% return on investment. The drugstore portfolio consists of one mortgage loan and one mezzanine loan, both backed by six retail properties that are fully leased to Walgreen Co. (WAG). Both loans mature in January 2016. Starwood said it intends to securitize the first mortgage loan while retaining the mezzanine loan in its own portfolio. The retail loan originated by Starwood was a refinance for the Shops at Solaris, located in Vail, Colo. The property includes a 70,000 square foot specialty retail space with a three-story parking garage. The loan has an LTV less than 65%, and Starwood expects a 12% return when the loan matures in June 2012. Write to Christine Ricciardi. Disclosure: The author holds no relevant investments.