logo
Share SHARE
FONT-SIZE Plus   Neg

NorthStar REIT Prices $531.5 Mln Non-recourse, Floating-rate CMBS Transaction

NorthStar Realty Finance Corp. (NRF) announced that NorthStar Real Estate Income Trust, Inc., its first sponsored non-traded REIT, successfully priced a $531.5 million non-recourse, floating-rate CMBS transaction at a weighted average coupon of LIBOR + 2.68%.

The company said that the CMBS transaction will initially be collateralized by $425.2 million of commercial real estate loans with the flexibility to contribute up to $106.3 million of additional commercial real estate loans within six months of closing. A total of $382.7 million of investment grade bonds will be issued, representing an advance rate of approximately 72%. The CMBS transaction is expected to close by the end of August.

As part of the CMBS transaction, NorthStar will contribute senior participations of originated commercial real estate loans, including an interest in the leasehold mortgage on the Milford Plaza hotel, and will retain $124.4 million of participations in these loans. NorthStar said it expects to earn a yield of approximately 13% on its Retained Interests, inclusive of fees and estimated transaction expenses. NorthStar, together with NorthStar Income, will retain an aggregate 35% ownership interest in the Milford Plaza hotel and retail component of the hotel.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Embark Veterinary Inc., a startup that makes dog DNA-testing kits for pet owners, vets and breeders, said it has raised $4.5 million in funding from investors and relocated its headquarters to Boston. The company intends to use the new funding to expand its canine genetic testing suite for pet owners, breeders, and veterinarians. Intel Corp. has completely shut down its wearables division about two weeks ago, CNBC reported, citing a person familiar with the matter. The company reportedly intends to focus on augmented reality. According to the CNBC report, Intel laid off about 80 percent of the team that made the Basis fitness watch in November 2016 and has now eliminated the division entirely. The Federal Trade Commission is investigating allegations that Amazon.com Inc. misled consumers about its pricing discounts, Reuters reported, citing a source close to the probe. The FTC probe is reportedly part of the agency's review of Amazon's proposed $13.4 billion deal to buy grocery chain Whole Foods Market Inc.
comments powered by Disqus
Follow RTT