Just two years ago, Starwood Property Trust told its shareholders about its first foreclosure on a loan that was net leased to a single grocery tenant that filed for bankruptcy. The 440,000-square-foot distribution center had a loan balance of $17 million, CFO Rina Paniry reminded shareholders on a more recent call for the first quarter of 2021. "Over the past two years, we leveraged the Starwood platform to release and market the property, Paniry said. The property was sold this quarter for $31 million, "a very successful outcome for our shareholders."

A pandemic intervened in the middle of that process, of course, and grocery stores in general have proven to be resilient to the worst of economic trends. Nevertheless, Paniry's news speaks volumes about lending in general for commercial real estate these days: times are good even as we battle the (hopefully) last vestiges of Covid-19. And by extension, funding is abundant, coming from both established players and new entrants alike.

Starwood Property Trust, for example, originated $2.2 billion across 12 loans for an average loan size of $184 million for the quarter. These were offset by $1.1 billion in loan repayments, bringing its commercial lending portfolio to a record $11.2 billion at quarter end, according to Paniry.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

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.