It had held $5.25 million of the loan through previous purchases of multiple pari passu participations. It purchased the remaining $6 million participation interest and terminated the related participation agreements.
This loan was originated on Feb. 15 by an affiliate of NorthStar Realty Finance Corp., which is NorthStar Healthcare’s sponsor.
Securing the loan is a 112-unit mixed independent living, assisted living and memory care facility. It is located in the middle of a 40-acre upscale single-family home and multi-use area.
The loan has a floating rate set at the one-month Libor plus 7%. A condition of the loan states the minimum interest rate is 8% per annum, even if Libor falls below 1%.
Its terms is 36 months, with two one-year extensions options for the borrower, subject to certain performance tests and the borrower paying a 50 basis point fee of the amount extended when each option is exercised.
Prepayment can be made after 21 months, as long as the borrower pays the interest which would be due on the loan through the 24th month.
After that point it can be prepaid in part or whole without penalty.
Its loan-to-value ratio was 70% at the time of origination.
NorthStar Healthcare will earn a fee equal 1% of the outstanding principal amount at the time of repayment.