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Starwood secures $482.5M CMBS loan to refinance 1,749 rentals
The floating-rate, interest-only debt matures in August 2028 and includes three 12-month extension options.
Starwood Asset Management, led by Barry Sternlicht, secured a $482.5 million commercial mortgage-backed securities, or CMBS, loan to refinance a nearly full single-family rental portfolio spanning 10 states.
The financing is floating-rate and interest-only, and it backs 1,749 properties, according to Fitch Ratings. The CMBS debt is scheduled to mature in August 2028 and includes three 12-month extension options.
The portfolio was just over 96 percent leased in April, with homes averaging 1,812 square feet and dating to 1992. Starwood paid $674 million for the houses as it assembled the portfolio between 2021 and 2022.
Commercial Observer also noted that nearly a third of the homes are in Georgia, with nearly a quarter in Arizona and just under 12 percent in Florida. Starwood has also been active in multifamily investing, buying four affordable housing properties in Miami-Dade County for a combined $115 million last week, while Nomura’s role in the loan reflects its renewed CMBS activity in the U.S. after a 27-year hiatus.