Item 8.01. Other Events.
The Property consists of a 225-unit, Class A multifamily property containing 14,800 square feet of ground-floor retail space and a 437-space covered parking garage. In total, the multifamily and retail components of the Property contain 237,000 square feet. The Property is managed by an affiliate of the borrower (the "Borrower"), an experienced real estate owner and operator that manages over 8,000 multifamily units located throughout the eastern
The Senior Loan bears interest at a floating rate of 5.35% over the one-month London Interbank Offered Rate ("LIBOR"), but at no point shall
The initial term of the Senior Loan is 39 months, with two one-year extension options available to the Borrower, subject to the satisfaction of certain performance tests and the payment of a fee equal to 0.25% of the amount being extended for the second one-year extension. The Senior Loan may be prepaid during the first 24 months, provided the Borrower pays an additional amount equal to the greater of (i) the remaining interest due on the amount prepaid through month 24 and (ii) 1.0% of the amount prepaid. Thereafter, the Senior Loan may be prepaid in whole or in part without penalty. The loan agreement for the Senior Loan (the "Senior Loan Agreement") requires the Borrower to comply with various financial and other covenants. In addition, the Senior Loan Agreement contains customary events of default (subject to certain materiality thresholds and grace and cure periods). The events of default are standard for agreements of this type and include, for example, payment and covenant breaches, insolvency of the Borrower, the occurrence of an event of default relating to the collateral or a change in control of the Borrower.
The Property's loan-to-value ratio ("LTV Ratio") is approximately 85%. The LTV Ratio is the amount loaned to the Borrower net of reserves funded and controlled by NorthStar Income II and its affiliates, if any, over the appraised value of the Property at the time of origination.
Safe Harbor Statement
This Current Report on Form 8-K contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "will," "may" or other similar words or expressions. These statements are based on NorthStar Income II's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward looking statements; NorthStar Income II can give no assurance that its expectations will be attained. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying any forward-looking statements will not materialize or will vary significantly from actual results. Variations of assumptions and results may be material. Factors that could cause actual results to differ materially from NorthStar Income II's expectations include, but are not limited to, the ability of the Borrower to effectively manage the Property, the ability of the Borrower to comply with the terms, including financial and other covenants, of the Senior Loan, whether the Borrower determines to extend the Senior Loan, changes in market rates for commercial properties located in