New York, NY (February 22, 2016) – NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it purchased a senior mortgage loan with a total commitment of up to $21.1 million for $16.9 million, representing 93% of the current outstanding principal amount of $18.2 million. The loan is secured by a 59,257 square foot retail property located in San Diego, California.
Investment highlights include:
- Located in close proximity to several densely populated communities, primary interstate highways and the corporate headquarters of a large U.S. company;
- Currently occupied by a diverse array of national and local retailers; and
- $3.0 million (approximately $50 per square foot) from future funding commitments is planned for capital expenditures, tenant improvements and leasing commissions over the term of the loan.
The borrower is an affiliate of an experienced developer, owner and operator of retail commercial real estate spanning more than 25 million square feet of retail properties, with over 30 years of experience.
“The purchase of this debt investment at a significant discount to the original loan amount demonstrates our sponsor’s discipline in its investment approach,” said Daniel R. Gilbert, chief executive officer and president. “NorthStar invests shareholders’ capital based on the results of our proven underwriting process and not by market pressures. Our ability to opportunistically capitalize on strong risk/return investments provides NorthStar with a diverse pipeline of opportunities across our target asset classes from a variety of sources.”
As of February 5, 2016, NorthStar Income II’s $1.5 billion portfolio consists of 18 senior mortgage loans, two real estate equity investment portfolios, three subordinate interest investments, two portfolios of real estate private equity funds and three commercial mortgage-backed securities investments.