The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Cushman & Wakefield Sonnenblick Goldman and Starwood Property Trust Structure $36 Million Financing for Manhattan's City Club Hotel

Monday, June 27, 2011

Cushman & Wakefield Sonnenblick Goldman and Starwood Property Trust Structure $36 Million Financing for Manhattan's City Club Hotel00:00 EDT Monday, June 27, 2011Loan guarantees up to $23 million of refinancing proceeds and up to $13 million of construction financingNEW YORK and GREENWICH, Conn., June 27, 2011 /PRNewswire/ -- Cushman & Wakefield Sonnenblick Goldman and Starwood Property Trust (NYSE: STWD) jointly announced today the completion of a $23 million refinancing and arrangement of up to $13 million in construction financing for the City Club Hotel in Midtown Manhattan.  The loan will allow for the construction of up to 66 additional rooms to be built above the existing small luxury hotel, home to Daniel Boulud's DB Bistro Moderne, which occupies a prime location on 44th Street between Fifth and Sixth Avenues. Jared Kelso and Ernest Lee of Cushman & Wakefield Sonnenblick Goldman's U.S. Hospitality Group represented the owners, City Club Hotel LLC, in arranging the financing.  The refinancing was completed in less than 30 days.  "The availability of creative capital for the hospitality sector continues to increase with each passing month," said Jared Kelso, a Cushman & Wakefield Sonnenblick Goldman Senior Director.  "We were pleased to secure financing in an incredibly short time frame from a lender who has a deep understanding of the New York City hotel market and recognized the demand for additional rooms at this exceptional hotel. Their ability to structure a non-recourse construction financing component speaks volumes about the outlook and availability of capital for high quality hospitality assets, particularly in major markets.""This transaction is a great example of maximizing Starwood's capabilities.  We were able to complete a highly structured, flexible deal on a transitional asset within a very short time period," said Boyd Fellows, President of Starwood Property Trust. "In New York, as in several of the nation's major metropolitan markets, hotel values have been buoyed by the strength of tourism and a rebound in corporate travel, which is driving high occupancy and rates." In recent months, Cushman & Wakefield Sonnenblick Goldman's U.S. Hospitality Group has been involved in several of the nation's premier hotel transactions, including the sales of the Hilton Long Island/Huntington, JW Marriott San Francisco and the Hilton Rye Town in Rye Brook, New York, and the $170 million financing of two Times Square hotels, a 9-hotel, $212 million portfolio for Felcor Lodging Trust and the Four Seasons Austin, among others. In 2011, CWSG has closed, or is currently in the market with over $1 billion of hospitality financing.Since its inception in 2009, Starwood Property Trust's experienced team of professionals have been providing commercial real estate operators with uniquely tailored, competitively priced and flexible financing solutions.  In regards to the hospitality industry, Starwood Property Trust recently originated a $165.5 million first mortgage loan, mezzanine loan and corporate loan on a portfolio of six full service hotels located throughout California.  In addition, the company originated a $30 million mezzanine loan on a luxury hotel located on the Upper East Side of Manhattan.About Cushman & Wakefield Sonnenblick GoldmanCushman & Wakefield Sonnenblick Goldman is the industry's leading independent real estate investment banking firm. The firm was founded as Sonnenblick Goldman in 1893 and it merged with Cushman & Wakefield in 2007. Cushman & Wakefield Sonnenblick Goldman provides a full range of real estate financial services, including debt and equity placements, joint ventures, hospitality investment sales and workout advisory services, and it collaborates world-wide with other divisions of Cushman & Wakefield. Further information can be found at the firm's website at www.cushwake.com/sonngold. About Starwood Property Trust, Inc.Starwood Property Trust, Inc. (NYSE: STWD) is a commercial real estate finance company that is focused primarily on originating and acquiring commercial mortgage loans and other commercial real estate-related debt investments.  Starwood Property Trust, Inc. is externally managed and advised by SPT Management, LLC, an affiliate of Starwood Capital Group, and has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes. SOURCE Starwood Property Trust, Inc.For further information: Dwayne Doherty, Cushman & Wakefield, +1-212-841-7748, ddoherty@cushwake.com; or Jason Chudoba, ICR on behalf of Starwood Property Trust, +1-646-277-1249, Jason.chudoba@icrinc.com