Company defaults on $212 million loan after CEO warns of economic 'suicide'

would have on the U.S. economy.

Eight months later, his prediction came true as his company defaulted on a $212.5 million mortgage backed by an Atlanta office tower when the loan matured on July 9. Acquiring a loan has grown progressively more expensive as the Federal Reserve raises interest rates to combat inflation. Last month was the first time in the past 15 months that the Federal Reserve

. The respite could be short-lived as at least two more increases are expected before the end of the year, according to the Fed Chair Jerome Powell.amid a competitive market. Average rates are on the verge of 7 percent, nearly 4 percent higher than the average mortgage rate in January 2022. Borrowers also are struggling to repay their loans in the corporate world as they battle high rates.

Barry Sternlicht, chairman and CEO, Starwood Capital Group, speaks during the Milken Institute Global Conference in Beverly Hills, California, on May 3, 2022. Starwood defaulted on a loan for an Atlanta, Georgia, office building when it failed to pay off or refinance when the loan matured on July 9.

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