 LaBine |
 Fowler |
HFF's Krolman says that "historically, iStar would have obtained financing on an unsecured basis by utilizing the company's BBB, investment grade credit rating. However, the current market conditions are such that it was more efficient and cost effective to finance a subset of their existing single tenant portfolio on a secured basis."
LaBine adds that "there were a number of ways to accomplish this including putting together a club deal to finance the portfolio, splitting the portfolio into smaller sub-portfolios or financing the whole portfolio with one source.
 Sugarman |
Jay Sugarman, chairman and CEO of iStar, says in a prepared statement that "we were looking for a financing partner for this important transaction who we could rely on for timely and dependable execution. With the financial flexibility GE Real Estate was able to provide, we were able to close the transaction in less than 45 days, helping to better position iStar longer-term and enabling us to begin taking advantage of the new, more attractive lending environment."
 Burger |
"While sizeable, this is a relatively conservative transaction, well-margined and secured by a geographically-diverse portfolio of single-tenant properties. Almost half the tenants are rated investment grade," says Alec Burger, president of GE Real Estate's North America Lending division. "We've known the management of iStar for several years and are confident they will use this financing to build a strong platform for the future. We see this as the first of many deals together."
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