- Starwood Capital Group secured a $930M CMBS loan backed by a 54-property industrial portfolio spanning Nevada, Arizona, Colorado, Maryland, and Tennessee.
- The portfolio totals 8.2M SF and is 88.3% leased to over 230 tenants, including Amazon, UPS, and FedEx.
- The floating-rate, nonrecourse loan was co-originated by Goldman Sachs, Barclays, Morgan Stanley, Natixis, and UBS, and is structured with a two-year term and three one-year extension options.
A Strategic Industrial Refi
An affiliate of Starwood Capital Group is refinancing a broad industrial portfolio, reports Commercial Observer. The deal involves a $930M commercial mortgage-backed securities (CMBS) package. The transaction was detailed in a recent report by ratings agency KBRA. The transaction, known as WFCM 2025-B33RP, is expected to close by September 26.
The financing is a floating-rate, nonrecourse loan with monthly interest-only payments and includes a two-year initial term with the option for three one-year extensions.
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Portfolio Snapshot
The deal covers 54 industrial assets totaling 8.2M SF across five states: Nevada, Arizona, Colorado, Maryland, and Tennessee. Over 230 tenants currently lease 88.3% of the portfolio, including major names like Amazon, UPS, and FedEx. This strong tenant mix underscores the stability and high demand in the industrial sector.
Roughly a quarter of the portfolio (24.9%) consists of single-tenant properties. One standout asset is 8410 Kelso Drive in Essex, Maryland. DAP Products fully leases the property under multiple agreements that run through 2030.
Why It Matters
The deal underscores institutional investor confidence in industrial real estate, even amid a higher interest rate environment. The Starwood portfolio has strong tenancy and geographic diversification. This highlights the industrial sector’s ongoing appeal to both lenders and ratings agencies.
Demand for logistics and distribution centers remains high, especially from e-commerce giants. As a result, industrial properties continue to attract large-scale refinancing and capital investment.
What’s Next
The transaction adds to a growing list of sizable industrial CMBS financings this year. Institutional investors like Starwood are doubling down on logistics-focused portfolios. With debt maturities nearing, investors are actively pushing more industrial debt deals into the pipeline, driving demand for refinancing.
Industry watchers will be closely following how these large-scale transactions perform in the CMBS market amid macroeconomic headwinds and ongoing shifts in tenant demand.
