NorthStar Income Deploys $120.6 Million and Increases Credit Facility with Citibank, N.A.
NEW YORK, Dec. 7, 2012 /PRNewswire/ -- NorthStar Real Estate Income Trust, Inc. (NorthStar Income), recently deployed $120.6 million into two senior loans and three commercial real estate securities, with a weighted average leveraged current yield of 11.9%. The two directly originated senior loans totaled $94.0 million and have a weighted average leveraged current yield of 13.6%. The three commercial real estate securities totaled $26.6 million and have a weighted average leveraged current yield of 8.7%. A summary of the two originated senior loans is below.
-- $22.0 million loan secured by a three-building office complex located in Moorestown, New Jersey. The proceeds of the loan were combined with $5.6 million of owner equity to acquire the property and to fund reserves for tenant improvements and leasing commissions. -- $72.0 million loan, $65.5 million of which was funded on the closing date of the loan and $6.5 million of which will be funded over the next 24 months for leasing expenses and capital expenditures. The loan is secured by and was used to partially refinance a two-building office complex totaling 432,550 square feet, located in Tysons Corner, Virginia.
In addition, NorthStar Income increased its available financing under its credit facility with Citibank, N.A. ("Citibank") from $50.0 million to $100.0 million. NorthStar Income currently has credit facilities totaling $240 million, $158.2 million of which is currently available after giving effect to the upsizing of the Citibank credit facility. The credit facilities will continue to be used by NorthStar Income to finance first mortgage loans and senior loan participations, secured by commercial real estate properties.
Daniel R. Gilbert, president and chief investment officer of NorthStar Income remarked, "These investments further demonstrate our ability to source and close accretive new loans. In addition, our credit facilities and recent securitization transaction continue to highlight our ability to successfully execute our business plan."
NorthStar Income's total portfolio, as of December 7, 2012, consists of $475.6 million in principal of commercial real estate debt and $30.6 million in principal of commercial real estate securities, with an overall weighted average leveraged current yield of approximately 13.5%.
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