- What Starlight U.S. Residential Fund refinanced Indigo Apartments
- Why Proceeds were used to pay down a prior mortgage
- What next Fund plans to amend its credit facility
Starlight’s U.S.-focused residential fund has refinanced an apartment property in North Carolina for $80.5m.
The collateral is the 489-unit Indigo, in Morrisville. About $62.2m of the proceeds are from a new first mortgage loan, while the remaining $18.3m is from an unsecured financing entered by a subsidiary of the fund. The proceeds were used to repay the former first mortgage.
The weighted average interest rate for the interest-only monthly payments is approximately 5.43%. The unsecured financing has additional interest, which is accrued and payable upon repayment of such loan, resulting in a weighted average interest rate of 7.25% for the Indigo refinancing.
Starlight U.S. Residential Fund was established in September 2021 to indirectly acquire, own and operate multifamily properties and single-family rental houses.
The fund also plans to amend its credit facility, and that is expected to be completed in the third quarter.
