Private-equity funds and commercial mortgage REITs are raising funds in order to step up lending. Capital Trust has filed plans with the Securities and Exchange Commission to raise $100 million in equity, and Starwood Property Trust plans to raise $720 million in a stock offering.
Starwood Property Trust has secured $275.2 million from two lenders. It closed on a $150 million warehouse finance facility with Goldman Sachs Mortgage and a $125.2 million asset-based credit line with Bank of America. It plans to use the capital to finance acquisitions or originate commercial mortgage loans.
A January survey of bank-loan officers by the Federal Reserve reveals that demand for credit by companies is down while banks have gone beyond limiting real-estate loans and are tightening other types of lending. The credit tightening is most severely affecting commercial and industrial loans.