GREENWICH, CT-Starwood Property Trust is deploying $131.4million of capital on to the market through a first mortgage loanand a B note secured by four resorts. The $59-million firstmortgage loan is secured by a 38-story office building in Chicago'sCBD, while the $72.3-million discounted purchase of a $90.6-millionparticipation in a B not secured by four resorts in the UnitedKingdom.
The office mortgage has a May 2015 maturity and bears interestat 8% per annum with a debt yield of 11.5%, expecting an unleveredreturn of 8.8%.
The corporate loan has a maturity of October 2012 with a rate ofL+350 basis points and the debt yield of 11.7%. The anticipatedreturn is 13.6% of that loan with the resorts averaging a 97%occupancy rate. The B note loan is in pounds, so the REIT has takenhedge measures against the potential currency risk.
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