Northstar Realty Finance Corp announced the release of a US$255 million loan secured with a leasehold mortgage over the Milford Plaza Hotel. The 1,331 room hotel is located right at the center of Times Square, New York, NY.
Northstar funded US$166 million part of the loan and the remaining US$89 million was funded by the company sponsored non-traded REITs, NorthStar Real Estate Income Trust Inc. The full loan was financed with US$130 million credit facility from Deutsche Bank AG, payable pro-rata between NorthStar and NorthStar Income REIT.
According to Daniel Hamamoto, Chairman and CEO of NorthStar Realty, "This transaction exemplifies our ability to offer highly specialized, complete capital solutions on transactions with significant size and complexity by leveraging our relationships, sophisticated investment team and capital markets expertise. This loan provides the sponsors a creative financing solution, while also providing us an attractive current return that could be further enhanced in a securitization and potential upside through an ownership interest in a historic hotel located in one of the best hotel submarkets in the world."
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