Blackstone's Property Deals

The WSJ summarizes Blackstone deals this year

• Blackstone and Glimcher buying Pearlridge Center on Oahu for $242mm from Northwestern Mutual
  
• Blackstone bought 60% stake in Glimcher's Lloyd Center (Portland) and Westshore Plaza (Tampa) in March for $60mm + debt assumption -- see here-both serve as collateral in 4 2003 deals.
  
• Caruso Affiliated & TPG Capital paid $750mm for retail and mixed-use out West
• Blackstone is buying an 80% stake in 17mm sq ft of warehouse space for $105mm + debt from an Eaton Vance Fund. Prologis is the joint owner and will keep its 20% stake.
• Blackstone closing this week on a $500mm purchase of a portion of GGP, this week.
  

And the winner is...

The Starwood investor group—including TPG and Five Mile Capital Partners LLC—is proposing to put in more than $600 million in new equity, the people said. The rival plan had proposed as much as a $450 million investment from Centerbridge and Paulson.

But what will happen to the gargantuan $4.1b CMBS loan?

The Starwood proposal also calls for some of the existing holders of Extended Stay's $4.1 billion first mortgage debt to continue holding their debt, known in financial circles as "rolling" their positions.

extend, and ...

The Starwood-led plan puts a higher value—nearly $4 billion—on Extended Stay than other estimates that have emerged during the process, according to people familiar with the situation. Upon its bankruptcy filing, the company estimated its value at $3.3 billion. The company's financial advisers have pegged its value to be about $2.8 billion to $3.6 billion.

pretend.

It's not over yet, though

To be sure, the Starwood-led plan is still far from a done deal as Centerbridge and Paulson could increase their bid and other bidders also could emerge, the people said. And the plan still needs to be approved by the bankruptcy court.