NorthStar Income II Originates Three Debt Investments Totaling $112 Million
NorthStar Real Estate Income II, Inc., a publicly registered non-traded real estate investment trust, originated a $46 million senior loan and two subordinate interest investments totaling $66.7 million.
The $46 million senior loan is secured by a 101-room full-service hotel located in midtown Atlanta and a 102-room full-service hotel located in downtown Atlanta.
The properties, which have more than 300,000 square feet of hotel space and 20,000 of square feet of retail space, are located in close proximity to main thoroughfares, public transportation and major cultural and educational landmarks.
The owner will complete $4.24 million (approximately $21,000 per room) in property in connection with an approved property improvement plan.
The first subordinate interest investment originated by the REIT totals $38.1 million and is secured by a 12-property, 2,811-unit multifamily portfolio with properties located in close proximity to major metropolitan areas including New York City and Philadelphia. The portfolio contains more than 2.2 million square feet of residential space and 12,000 square feet of retail space.
The purchaser, an affiliate of a New York City-based real estate investment fund, intends to implement a total of $21.1 million in required capital improvements to the portfolio (approximately $7,501 per unit).
The second debt investment, a $28.6 million subordinate interest, will be used to partially capitalize the development of a $206.2 million, 82-unit six-story multifamily project in New York City, which is expected to be completed in 2018.
The development is located on a full block in the heart of the East Village and will be comprised of more than 100,000 sellable square feet and various full-service luxury amenities, including a 24-hour attended lobby, swimming pool and fitness and spa facilities.
The project sponsor is a commercial real estate developer with substantial local experience.
“Our sponsor’s in-house origination capabilities continue to provide a platform to identify and source compelling commercial real estate investment opportunities throughout the capital structure,” said Daniel R. Gilbert, chief executive officer and president. “The collateral underlying these investments are located in major metropolitan areas with strong demographics and population growth. The addition of these investments further diversifies NorthStar Income II’s $1.5 billion portfolio with quality investments backed by experienced real estate owners, operators and developers.”
NorthStar Income II was formed to originate, acquire and asset manage a diversified portfolio of commercial real estate debt, select equity and securities investments. As of September 30, 2015, NorthStar Income II’s $1.5 billion portfolio consists of 20 CRE debt investments with a combined principal amount of $909.9 million, 24 real estate equity investments with a total cost of $464.3 million, two portfolios of real estate private equity funds interests with a carrying value of approximately $52.3 million and three CRE securities with a combined principal amount of $25.5 million.
Click here to visit Northstar’s directory sponsor page.
