The public, non-traded NorthStar Real Estate Income II, Inc. (NS Income II) has added to its portfolio by originating a senior loan secured by a class-A multifamily property in Norfolk, Virginia.
The 225 unit property consists of luxury apartments and ground floor retail space in proximity to major transportation routes and regional employers.
According to its website, the city of Norfolk has approximately 237,000 residents and was named one of the top ten business relocation cities by Expansion Management Magazine. It’s also home to one of the world’s largest naval bases and the North American NATO headquarters.
NS Income II funded the $39.2 million senior loan with available cash and a $19.6 million advance on its secured term credit facility.
“This transaction demonstrates the strength of our direct origination platform and our ability to obtain efficient financing for debt investments backed by well-located, high-quality real estate assets. As NorthStar Income II expands, we feel confident that we will be able to capitalize on similar compelling opportunities that are consistent with our business plan,” Daniel R. Gilbert, chief executive officer and president, commented in a statement.
NS Income II, sponsored by NorthStar Realty Finance Corp. (NYSE: NRF), intends to qualify as a real estate investment trust. It was formed in December of 2012 with the intent to originate, acquire, and managed a diversified portfolio of commercial real estate including debt, select equity, and securities investments.
Through March 7, 2014, NS Income II has raised total gross proceeds of $62.5 million and used only $32.4 million of its $100 million credit facility.