ROCKVILLE, MD-The last major financing Starwood Property Trust closed in the DC area was a complex $238-million package it co-originated for Monday Properties in the Spring. Now the REIT is back, financing a $46-million first mortgage loan on a 315-room Hilton here owned by JBG Cos.
The transitional loan, which JBG will be using to recapitalize the property and invest in a renovation, is a far more straightforward transaction than the Monday deal. However, Starwood president and director Boyd Fellows tells GlobeSt.com that the REIT is working on another complex transaction that it hopes to close by year-end that is valued at $300 million. “There are definitely more deals to come for us in the DC area.”
The JBG loan is important to the company as well, Starwood’s Stuart Silberberg says. “This was a good opportunity to do business with a prime sponsor.”
JBG will be using some of the proceeds to improve the ballroom and the retail space that is part of the hotel. The Starwood executives declined to discuss the terms of the loan other than to say it was a floating-rate loan based on Libor, with a five-year maturity. The eight-story hotel is located at 1750 Rockville Pike. Jones Lang LaSalle’s Bill Grice, Mathew Comfort, Wes Boatwright and Mike Yavinsky brokered the deal.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
