Commercial Real Estate Investments
Starwood Capital Returns in Commercial Real Estate Market
The biggest slient drama: the return of Barry Sternlicht, who runs the $14 billion-in-assets Starwood Capital and who built his name buying properties on the cheap after the Savings and Loan crisis.
Sternlicht's current focus is on one of Greenwich's prime downtown office buildings, 100 West Putnam. The building once housed two hedge funds: Plainfield Asset Management and Duff Capital; both have run into serious financial trouble due to the financial crisis. Unable to pay their rents, their predicaments have placed 100 West Putnam's property manager, Antares, a few missed mortgage payments away from possibly losing control of the building to Starwood Capital.
According to people involved in the deal, Starwood Capital purchased the $30 million mezzanine loan and certain rights on the rest of the debt on the building, in a play to seize control of it. Mezzanine debt is the commercial equivalent of a second mortgage, with a few key differences. Source
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Tags: Commercial Real Estate Investments, Greenwich connecticut, Commercial Real Estate hedge funds, hedge funds buying real estate, starwood capital, barry Sternlicht