Barry Sternlicht’s Starwood Property Trust has provided a $500 million loan to Dune Real Estate Partners and Robert Martin Company. The financing will be used to refinance a 42-property industrial portfolio in Westchester County, New York, as reported by the Commercial Observer. The properties total 2.4 million square feet and are located near New York City.
The refinancing comes after a previous $455 million recapitalization of the same portfolio four years ago, which involved Bank of America and brought in Dune Real Estate Partners as an affiliate. JLL Capital Markets arranged the latest loan, with Christopher Peck, Peter Rotchford, and Christopher Pratt leading the team.
None of the companies directly involved commented on the deal. However, Peter Rotchford stated that the properties have shown “remarkable resilience through multiple economic cycles” and expressed optimism for their continued strong performance. “The financing supports the sponsors’ continued value-creation strategy following their recapitalization of the portfolio in December 2021,” Rotchford said.
The portfolio includes notable sites such as Mid-Westchester Executive Park in Hawthorne, South Westchester Executive Park in Yonkers, and Cross Westchester Executive Park in Elmsford.
Starwood Property Trust continues to be active in industrial real estate. Earlier this year, its affiliate Starwood Capital Group acquired a 38-property last-mile warehouse portfolio from Goldman Sachs and Dalfen Industrial for $685 million. In 2023, Starwood also partnered with Onyx Equities to buy a 10-property light industrial portfolio near John F. Kennedy International Airport for $146 million—a transaction believed to set a record for Long Island’s most expensive industrial property sale at that time.
According to Lincoln Property Company’s market report at the end of Q2, there were 2.2 million square feet of industrial space available for lease in Westchester County, with average asking rents approaching $25 per square foot.
