Starlight Residential Fund has completed the refinancing of a class A apartment complex in the Raleigh, N.C., area.

Toronto-based global investor, developer and property manager Starlight Investments controls the fund. Starlight said the $80.5 million of gross proceeds were primarily used to repay the existing first mortgage on the Indigo Apartments property and repay approximately $14.7 million towards the fund’s credit facility.

Approximately $62.2 million of the refinancing proceeds went to a new first mortgage with the remaining $18.3 million coming from an unsecured financing entered into by a subsidiary of the fund.

Starlight said the weighted average interest rate for the interest-only monthly payments is approximately 5.43%. The unsecured financing vehicle has additional interest which is accrued, resulting in an all-in weighted average interest rate for the Indigo refinancing (including the accrued amount) of 7.25%.

The Indigo complex contains about 490 suites.

The fund’s credit facility is slated to be amended in the third quarter of 2024. Starlight said the Indigo refinancing and amended credit facility will allow the fund to enhance its liquidity position and benefit from ongoing improvements in the real estate investment market.

Photo: Starlight Investments