Starwood Property Trust originated a $170 million first mortgage on behalf of Stellar Management for One SoHo Square, two class-B office buildings located at 161 Ave. of the Americas and 233 Spring St. inCity. Stellar plans to redevelop One SoHo Square into a class-A property.
The loan comes with initial funding of $135 million, with $35 million available for future advances to pay for tenant improvements,commissions and redevelopment costs. It features a floating interest rate, a loan to value ratio of approximately 65 percent and a three-year term with two one-year extension options.
“The One SoHo Squareis another example of our ability to provide borrowers with creative lending solutions,” said Director and President of Starwood Property Trust Boyd Fellows in a statement. “Our large scale and flexible capital made it possible for us to principal this relatively large and complex loan.”
Starwood found the deal attractive because it offered good upside and a reliable borrower, according to Warren DeHaan, chief origination officer and managing director with SPT Management LLC, an affiliate of Starwood Capital Group and an advisor to Starwood Property Trust.
“In the case of One SoHo, we had a high quality sponsor, a good basis and world class real estate with a story,” he says. “Stellar Management, in our view, is the right sponsor to execute on a complicated business plan.”
One SoHo Square contains more than 600,000 sq. ft. ofand retail space. The property is currently 96 percent occupied.