Public, non-traded REIT NorthStar Income II (the REIT) announced today that it has originated a senior loan secured by Select-Service Hotel in Sunnyvale, California for $36.25 million. The borrower and NorthStar Asset Management Group (NSAM) sponsored programs, the REIT’s sponsor, have now completed three transactions together totaling $112.5 million.
“We believe NorthStar’s relationship-driven origination platform allows us to customize loan terms to meet our borrower’s financing needs, driving repeat business with leading real estate owners and operators,” commented Daniel R. Gilbert, chief executive officer and president of the REIT.
The 136-room hotel located in Silicon Valley offers convenience and close proximity to companies such as Google, Apple, and Facebook.
Since 2007, $4.4 million has been spent on improvements to the property. The borrower intends to continue renovations and will spend $2 million doing so, bringing the per room capital expenditure total to $47,000.
As of today, January 22, 2015, the REIT’s portfolio consists of nine senior mortgage loans totaling $508.2 million in principal and one subordinate interest valued at $24.9 million.