Starwood Scores $930M Loan for Five-State Industrial Bet

Starwood Capital Group just landed one of the year’s biggest industrial refinancings, locking in a $930 million CMBS loan on a 54-property portfolio stretching across five states.

The financing, analyzed by ratings agency KBRA, was co-originated by Goldman Sachs, Barclays, Morgan Stanley, Natixis and UBS, the Commercial Observer reported.

It’s structured as a floating-rate, nonrecourse loan with an initial two-year term and three one-year extension options, requiring interest-only payments. Closing is expected later this month.

The deal covers 8.2 million square feet of warehouse and logistics space in Nevada, Arizona, Colorado, Maryland and Tennessee. The properties are 88 percent leased to more than 230 tenants, including Amazon, UPS and FedEx. Single-tenant assets account for roughly a quarter of the portfolio, among them a Maryland facility leased to DAP Products until 2030.

For Barry Sternlicht’s Starwood, the deal underscores how private equity giants are leaning on the CMBS market to refinance large-scale industrial bets, even as higher rates make debt more expensive. Lenders are still circling logistics assets, which continue to draw strong tenant demand despite broader cooling in commercial real estate.

Neither Starwood nor the originating banks commented on the deal.

The refinancing makes it a trifecta of major industrial transactions this year for Starwood, which has played all sides of the market.

In March, Starwood purchased a 38-property portfolio from Goldman Sachs and Dalfen Industrial for $685 million, keeping the latter around to lead operations. At the time of the deal, the portfolio was 89 percent leased, according to Dalfen chief executive officer Sean Dalfen, featuring Wilson Sporting Goods, Amazon, Walgreens and Kroger among its tenants.

Last month, Starwood Property Trust lent $500 million to Dune Real Estate Partners and Robert Martin Company to refinance their 42-asset industrial portfolio in New York’s Westchester County, which spans 2.4 million square feet in the New York City-adjacent market.

— Holden Walter-Warner