FS Credit Real Estate Income Trust Inc., a non-traded real estate investment trust sponsored by FS Investments, recently closed on two senior floating-rate mortgage loans totaling $44 million, according to filings with the Securities and Exchange Commission.
The REIT originated a $30 million senior floating-rate mortgage loan used to refinance a 65,500-square-foot boutique office building located at 260 Fifth Avenue in Manhattan. The company funded the purchase of the loan with proceeds from its repurchase facility with Goldman Sachs Bank USA and its private placement offering.
The 260 Fifth Avenue loan bears interest at a floating rate of 3.75 percent over the one-month London Interbank Offered Rate with an interest rate floor of 5.25 percent per year and loan to value ratio of 60 percent. The 260 Fifth Avenue loan has an initial 24-month term with one 12-month extension option.
FS Credit REIT also closed a $14 million senior floating-rate mortgage loan to refinance the Northview Business Center, a 257,000-square-foot office building located in Austin, Texas. The company funded the loan purchase with cash on hand and proceeds from its repurchase facility with Goldman Sachs.
The Northview Business Center loan bears interest at a floating rate of 4.25 percent over the one-month LIBOR with an interest rate floor of 5.75 percent per annum and an appraised loan to value ratio of approximately 57 percent. The Northview Business Center Loan has an initial 24-month term with three 12-month extension options.
FS Credit Real Estate Income Trust, which is advised by FS Real Estate Advisor and sub-advised by Rialto Capital Management, plans to invest in floating-rate mortgage loans that are secured by first-priority mortgages on transitional commercial real estate properties. The offering was declared effective in September 2017, and as of the fourth quarter of 2017, the company’s portfolio consisted of three floating-rate mortgage loans totaling approximately $50 million.