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.