Northstar Originates $72M Loan on Tysons Office Portfolio

Northstar Real Estate Income Trust Inc reported Wednesday that it has originated a $72 million senior loan to partially refinance a two-building office portfolio totaling 432,550 square feet in Tysons Corner, VA.

$65.5 million of the loan was funded on the closing date. $6.5 million will be funded over the next 24 months for leasing expenses and capital expenditures.

The property’s loan-to-value ratio is approximately 76%.

The owner of the property is a subsidiary of a national real estate company founded in 1972 that is currently responsible for managing over $5.0 billion of commercial, hospitality and residential assets nationwide and over the past 40 years has developed, acquired or managed over $16.0 billion of real estate assets.

The funded amount bears interest at a floating rate of 6.25% over the one-month LIBOR Rate, but at no point shall the LIBOR Rate be less than 0.50%, resulting in a minimum interest rate of 6.75% per annum.

The initial term of the senior loan is 36 months, with two one-year extension options available to the owner, subject to the satisfaction of certain performance tests and the owner paying a fee equal to 0.25% of the amount being extended for the first extension option and 0.50% of the amount being extended for the second extension option. 

The senior loan may be prepaid in whole or in part during the first 24 months, provided the owner pays the remaining interest due on the amount prepaid through the first 24 months.  Thereafter, the senior loan may be prepaid in whole or in part without penalty.

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