NorthStar/RXR New York Metro Real Estate Secures Interest in NYC Condo Development

NorthStar/RXR New York Metro Real Estate Inc., a publicly registered non-traded real estate investment trust sponsored by Colony NorthStar (NYSE: CLNS) and RXR Realty, originated a $12 million pari passu interest in a $20 million mezzanine loan, according to a filing with the Securities and Exchange Commission.

The loan is secured by ownership interest in 11-19 Jane Street, a condominium development project located in the West Village of New York City. The property is owned by an affiliate of New York City-based developer Edward J. Minskoff Equities Inc., which it intends to develop into a 31,000-square-foot condominium with seven residential units and six parking spaces.

NorthStar/RXR completed the Investment through a partnership with an affiliate of RXR Real Estate Value Added Fund – Fund III LP, an institutional private equity real estate fund, with NorthStar/RXR investing $12 million and Fund III investing $8 million.

The loan bears interest at a floating rate of 9.50 percent over the one-month London Interbank Offered Rate, with a LIBOR ceiling of 1.5 percent. It has a 1 percent origination fee and an initial term of three years with two one-year extension options. The loan-to-cost ratio is approximately 83 percent.

NorthStar/RXR funded the investment with proceeds from its ongoing initial public offering.

NorthStar/RXR New York Metro Real Estate focuses on investing in commercial real estate concentrated in the New York metropolitan area, primarily office, mixed-use, and to a lesser extent, multifamily properties. The offering was declared effective in February 2015 and has raised $29.4 million in investor equity, as of August 4, 2017.

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