New York, NY (January 13, 2016) – NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it recently originated a $46.0 million senior loan and two subordinate interest investments totaling $66.7 million.
Hotel Portfolio | Atlanta, Georgia
- $46.0 million senior loan secured by a 101-room full-service hotel located in midtown Atlanta and a 102-room full-service hotel located in downtown Atlanta, totaling over 300,000 square feet of hotel space and over 20,000 of square feet of retail space.
- The properties are located in close proximity to main thoroughfares, public transportation and major cultural and educational landmarks.
- $4.24 million (approximately $21,000 per room) in property improvements will be completed by the owner in connection with an approved property improvement plan.
Mid-Atlantic Multifamily Portfolio | New Jersey, Pennsylvania and Delaware
- $38.1 million subordinate interest 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 over 2.2 million square feet of residential space and over 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).
East Village Development | New York City, New York
- $28.6 million subordinate interest 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 over 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.”
As of September 30, 2015, adjusted for acquisitions, originations and certain repayments through January 10, 2016, 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.