NorthStar Real Estate Income, II, Inc. (NorthStar Income II or the REIT), a public, non-traded REIT that mainly invests in commercial real estate debt, has added its seventh senior mortgage loan. Announced today, NorthStar Income II originated an $84 million senior secured loan.
The borrower, an experienced commercial real estate (CRE) owner / operator, is no stranger to the REIT’s sponsor, NorthStar Asset Management Group, Inc. Earlier this year, another NorthStar non-traded REIT NorthStar Real Estate Income Trust, Inc. provided $12 million in mezzanine financing which helped the borrower purchase an office property in Austin, TX.
“We continue to utilize our relationship-driven, in-house origination platform to identify and source compelling investment opportunities with experienced repeat borrowers,” said Daniel R. Gilbert, chief executive officer and president in a statement.
Today’s announced loan is secured by a Class A office complex in Irving, TX. The property, constructed in 2001, consists of two adjoining buildings that offer over 526,000 rentable square feet in a well-located area with convenient access to major highways. The borrower manages over 5.7 million square feet of CRE, of which more than half is Class A office space in Texas.
“Backed by a leading sponsor with a high-quality, Class A asset, this investment represents another strategic addition that further diversifies the NorthStar Income II portfolio,” added Gilbert.
With $63 of the $84 million loan funded initially, NorthStar Income II plans to fund the remaining $21 million over the 36-month term.
As of today, November 20, 2014, the REIT’s portfolio includes seven senior mortgage loans that total $431 million in principal and $24.9 million in one subordinate interest.
NorthStar Income II is a $1.5 billion primary offering expected to close May 6, 2015, unless extended by its board. As of November 11, 2014, the REIT has raised about $248 million.