Starwood Property Trust has announced that its participation in a recently completed commercial mortgage securitization generated nonrecourse match-funded financing for the company with an effective cost of funds of approximately 3.5%.
Starwood Property Trust separated five mortgage loans with an aggregate face value of $178 million into senior and junior loans. The company contributed the five senior loans comprising either a senior A note or senior participation, with a face value of approximately $84 million to the securitization and received approximately $92 million in proceeds, while retaining $94 million of junior interests.Â
The contributed loans are secured by office, retail and industrial properties and have remaining maturities of between four and seven years. Goldman, Sachs, Citigroup Global Markets Inc. and Wells Fargo Securities LLC acted as initial purchasers.Â
Each of the five loans was either originated or acquired by Starwood as part of a first-mortgage loan.
SOURCE: Starwood Property Trust Inc.