NorthStar Real Estate Income II (NorthStar Income II) announced today that it has recently originated a senior loan of $41 million that is secured by a data center in Norwalk, Connecticut.
Sponsored by NorthStar Asset Management Group (NSAM), NorthStar Income II is a non-traded REIT that focuses on investing in commercial real estate debt, select equity, and securities investments.
The 167,000 square foot state-of-the-art data center was built-to-suit in 2014 and is 100% leased for a 21-year term by an affiliate of Cervalis LLC, a leading provider of IT infrastructure solutions. Cervalis has made a significant capital investment toward building the property.
“We continue to leverage our strong relationships with experienced borrowers to identify and source investment opportunities with positive credit characteristics that are consistent with our business plan,” commented Daniel R. Gilbert, chief executive officer and president. “This transaction demonstrates the strength of our sponsor’s platform as we expand NorthStar Income II and create a diverse and balanced portfolio,” he added.
The loan has a minimum interest rate of 6.85% per year and an initial term of 36 months with two, one-year extension options. This is the third transaction this year between the borrower and investment vehicles sponsored by NSAM. In January 2014 NorthStar Income Real Estate Inc. provided a $12.0 million mezzanine loan secured by an office property in Austin, Texas and NorthStar Income II provided an $84.0 million senior mortgage loan secured by an office complex in Irving, TX in November 2014.
As of December 5, 2014, NorthStar Income II’s portfolio consisted of eight senior mortgage loans having a total principal amount of $472.0 million and one subordinate interest totaling $24.9 million