A subsidiary of Northstar Real Estate Income II, Inc. has originated a $39.2 million senior loan secured by 201 Twenty One, a multifamily property in Norfolk, VA.
The 225-unit, Class A multifamily property totals 237,000 square feet and contains 14,800 square feet of ground-floor retail space and a 437-space covered parking garage.
The property is managed by an affiliate of the unidentified borrower, an owner and operator that manages over 8,000 multifamily units located throughout the eastern United States.
The property’s loan-to-value ratio, or LTV ratio, is approximately 85%.
The senior loan was funded with a combination of proceeds from the firm’s offering and an advance under its secured term credit facility with Citibank, N.A.
The senior loan bears interest at a floating rate of 5.35% over the one-month London Interbank Offered Rate, or LIBOR, but at no point shall LIBOR be less than 0.25%, resulting in a minimum interest rate of 5.60%. Northstar earned an upfront fee equal to 0.75% of the senior loan amount and will earn a fee equal to 1.0% of the outstanding principal balance of the senior loan at the time of repayment.
The senior loan may be prepaid during the first 24 months with stipulations.
The initial term of the senior loan is 39 months, with two one-year extension options available to the borrower, subject to the satisfaction of certain performance tests and the payment of a fee equal to 0.25% of the amount being extended for the second one-year extension.