NexPoint Real Estate Finance, Inc. Enters into Assignment Agreement with The Ohio State Life Insurance Company

On January 2, 2025, NexPoint Real Estate Finance, Inc. finalized an Assignment and Assumption and Co-Lender Agreement with The Ohio State Life Insurance Company (OSL), marking a significant development for the company. The agreement, effective from this date, involved NexPoint Real Estate Finance, Inc.’s subsidiary, NREF OP IV, L.P. (OP IV), assigning a $7.5 million interest in the Alewife Loan to OSL in exchange for cash. This agreement also resulted in an increase in OSL’s allocation of the right to fund up to 14.4896% of the Alewife Loan.

Prior to this agreement, on May 10, 2024, NexPoint Real Estate Finance, Inc., through OP IV, NXDT OP, the operating partnership of NexPoint Diversified Real Estate Trust, and The Ohio State Life Insurance Company entered into an Initial Assignment Agreement. This initial agreement involved OP IV assigning the right to fund up to 9% of the Alewife Loan to NXDT OP and allocating a similar percentage to OSL.

Under the terms of the Assignment Agreement, NexPoint Real Estate Finance, Inc. retains the option to purchase all amounts funded by OSL in the Alewife Loan at any time. Additionally, upon receiving a draw request, both NXDT OP and OSL have the opportunity to fund a percentage of the total advances previously made under the Alewife Loan, with any remaining amounts to be funded by OP IV as per the contract.

Furthermore, if NXDT OP and OSL choose to fund less than their respective percentages of all advances made under the Alewife Loan, they have the option to pay the remaining unfunded amount to OP IV. Upon such payment, the paying party becomes entitled to all accrued interest and fees on the outstanding amount from the date of payment onwards.

The completion of this Assignment Agreement highlights NexPoint Real Estate Finance, Inc.’s strategic efforts to enhance its financial position and partnerships within the real estate finance sector. As detailed in the SEC filing, this agreement underscores the company’s commitment to prudent financial management and strategic collaborations for future growth opportunities.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read NexPoint Real Estate Finance’s 8K filing here.

About NexPoint Real Estate Finance

NexPoint Real Estate Finance, Inc operates as a commercial mortgage real estate investment trust in the United States. It focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments, as well as multifamily and single-family rental commercial mortgage-backed securities securitizations, multifamily structured credit risk notes, and mortgage-backed securities or target assets.