San Francisco-based developer Jay Paul Company grabbed a whopping $480 million in construction funds from Starwood Property Trust to continue building 181 Fremont Street, a mixed-use project in San Francisco’s uber-trendy South of Market neighborhood.
The building will have 400,000 square feet of office space, 65 residential condominiums and a retail component, according to Starwood executives. Construction began last November, according to published reports. At the time, Jay Paul estimated the cost of the project to be $500 million.
This past October, after three and a half-weeks of negotiations, Starwood Property Trust and a fund controlled by Starwood Capital Group originated the REIT’s largest transaction so far—$475 million in combined acquisition and construction financing for a joint venture to develop Times Square Gateway Center, a 340,000-square-foot multi-use complex in the busiest area of Manhattan.
After a run of about three years, Starwood Property Trust, which real estate investor Barry Sternlicht took public in August 2009, has “entered the big league,” as FBR Capital Markets analyst Gabe Poggi wrote in a report after the release of the REIT’s third-quarter 2012 results.