Summers is wrong on aggressive lending: Starwood’s Sternlicht

New York /
Nov.November 22, 2013 03:52 PM

Starwood Capital Group CEO Barry Sternlicht dismissed a comment made by former U.S Treasury Secretary Lawrence Summers urging banks to become more aggressive lenders today, saying the lending environment for commercial real estate is healthy and appropriate.

“I am delighted that banks are not stepping up and doing a lot of construction loans on buildings that do not need to be built,” Sternlicht said, contradicting Summers’ claims yesterday that the country needed to prioritize making capital freely available.

“I am happy with the lending environment,” Sternlicht told Bloomberg News.

Rising yields in commercial real estate will ensure that there are plenty of lenders, Sternlicht said. Indeed, prices for U.S. multifamily, retail, office and industrial buildings have jumped 59 percent since 2009, according to the Moody’s/RCA Commercial Property Index.

Starwood recently led the origination of a $475 million construction loan to allow for a joint venture between the Related Companies and Oxford Properties Group to build the South Tower at Hudson Yards, a financing deal that was notable for its unusual structure, as The Real Deal reported. [Bloomberg News]  — Hiten Samtani


Related Articles

arrow_forward_ios
The price of a new home in China’s largest cities fell for the first time since 2015
New home prices in China’s largest cities fall for first time since 2015
New home prices in China’s largest cities fall for first time since 2015
Real estate powers Blackstone’s best quarter ever
Real estate powers Blackstone’s best quarter ever
Real estate powers Blackstone’s best quarter ever
Terreno Realty CEO W. Blake Baird and an aerial of the property (Google Maps)
Terreno Realty pays $44M for NJ industrial site
Terreno Realty pays $44M for NJ industrial site
Madison Realty Capital Co-Founders Josh Zegen and Brian Shatz with a rendering of the River North development (Madison Realty Capital, FXCollaborative)
Madison Realty’s altered plans for SI complex approved
Madison Realty’s altered plans for SI complex approved
Pandemic forces mom-and-pop landlord to sell out
Pandemic forces mom-and-pop landlord to sell out
Pandemic forces mom-and-pop landlord to sell out
PBC's Eli Elefant and 452 Fifth Ave (PBC)
Elefant’s PBC to liquidate $2B in US real estate, including HSBC building
Elefant’s PBC to liquidate $2B in US real estate, including HSBC building
Chinese developer willing to sell Manhattan supertall site at big loss
Chinese developer willing to sell Manhattan supertall site at big loss
Chinese developer willing to sell Manhattan supertall site at big loss
SL Green CEO Marc Holliday, Chelsea Piers Fitness CEO David Tewksbury and One Madison Avenue (Getty, SL Green)
Chelsea Piers is coming to SL Green’s One Madison
Chelsea Piers is coming to SL Green’s One Madison
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...