NEW YORK—NorthStar RealtyCorp. has originated a $255 million loan secured by a leasehold mortgage in the recently renovated, 1,331-room Milford Plaza hotel located in Times Square. NorthStar originated $166 million of the loan, while one of NorthStar's sponsored non-traded REITs, NorthStar Real Estate Income Trust Inc., originated the remaining $89 million.
The loan was financed with $130 million from credit facilities with Deutsche Bank AG, pro-rata between NorthStar and NorthStar Income.
NorthStar and NorthStar Income, on a pro-rata basis, will have a 35 percent ownership interest in the Milford Plazaand the retail component of the hotel. The current sponsor, a joint venture between Highgate Hotels and real estate private equity firm Rockpoint Group, will retain the remaining 65 percent ownership interest in the hotel and retail.
Located within walking distance to Broadway and the Theater District, the Milford Plaza hotel offers close proximity to retail and other entertainment.