NorthStar Income II Originates $36.25 Million Senior Loan Secured by Select-Service Hotel in Sunnyvale, California
NEW YORK, Jan. 22, 2015 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it originated a $36.25 million senior loan secured by a 136-room select-service hotel located in Sunnyvale, California.
Investment highlights include:
- Located in the heart of Silicon Valley, in close proximity to major Internet and technology companies, including Google, Apple and Facebook;
- Features 10,600 square feet of meeting space; and
- Recently renovated and the borrower plans to complete an additional $2.0 million in capital improvements using proceeds from the senior loan, for a total of $6.4 million in capital expenditures since 2007 ($47,000/room).
This investment represents the third transaction completed between the borrower and investment programs sponsored by NorthStar Asset Management Group Inc. (NSAM), NorthStar Income II's sponsor, totaling $112.5 million.
"We believe NorthStar's relationship-driven origination platform allows us to customize loan terms to meet our borrower's financing needs, driving repeat business with leading real estate owners and operators," said Daniel R. Gilbert, chief executive officer and president. "This loan represents our third transaction with this experienced investor, demonstrating our ability to identify, source and execute on high-quality, off-market investment opportunities with established repeat borrowers."
NorthStar Income II's portfolio consists of nine senior mortgage loans with a combined principal amount of $508.2 million and one subordinate interest totaling $24.9 million, as of January 22, 2015.
About NorthStar Real Estate Income II, Inc.
NorthStar Income II is a public, non-traded REIT sponsored by NSAM. NorthStar Income II was formed to originate, acquire and asset manage a diversified portfolio of commercial real estate debt, select equity and securities investments.
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "will," "may," "plans," "intends" or other similar words or expressions. These statements are based on NorthStar Income II's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward looking statements; NorthStar Income II can give no assurance that its expectations will be attained. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying any forward-looking statements will not materialize or will vary significantly from actual results. Variations of assumptions and results may be material. Factors that could cause actual results to differ materially from NorthStar Income II's expectations include, but are not limited to, the borrower's ability to effectively manage the property securing the senior loan, whether the borrower successfully completes an additional $2.0 million in capital improvements to the property, the borrower's ability to comply with the terms, including financial and other covenants, of the loan agreement, whether the borrower determines to extend the senior loan, changes in market rates and conditions for commercial properties, particularly hotels, located in Sunnyvale, California, NorthStar Income II's ability to build and maintain long-term relationships with leading real estate owners and operators, NorthStar Income II's ability to identify, source and execute on high-quality, off-market investment opportunities with established repeat borrowers, future property values, the impact of any losses from NorthStar Income II's investments on cash flow and returns, property level cash flow, changes in economic conditions generally and the real estate and debt markets specifically, availability of capital, the ability to achieve targeted returns, changes to generally accepted accounting principles, policies and rules applicable to REITs and the factors specified in in Part I, Item 1A of NorthStar Income II's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as well as in NorthStar Income II's other filings with the Securities and Exchange Commission. The foregoing list of factors is not exhaustive. All forward-looking statements included in this release are based upon information available to NorthStar Income II on the date of this release and NorthStar Income II is under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.
SOURCE NorthStar Real Estate Income II, Inc.
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