NorthStar Income II Originates $17.5 Million Senior Loan Secured by Atlanta Area Multifamily Portfolio

NEW YORK, July 2, 2014  /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it originated a $17.5 million senior loan secured by a portfolio of three multifamily properties in suburban Atlanta. An experienced Georgia-based real estate developer owns the properties, which contain 893 units and 956,000 square feet. The borrower recently completed a $5.5 million renovation at the properties and plans to make additional improvements using proceeds from the senior loan. In total, affiliates of the borrower have completed five transactions totaling $91.5 million in aggregate loan proceeds with investment vehicles sponsored by NorthStar Asset Management Group Inc. (NYSE: NSAM), successor to NorthStar Realty Finance Corp.'s (NYSE: NRF) asset management business.

"This transaction underscores the strength of our in-house origination platform and our ability to source compelling investments with experienced project sponsors," said Daniel R. Gilbert, chief executive officer and president. "Our investment team is committed to driving value through similar transactions as we continue to build momentum and ramp the NorthStar Income II portfolio."

NorthStar Income II's portfolio consists of four senior mortgage loans with a combined principal amount of $157.2 million as of July 2, 2014.

About NorthStar Real Estate Income II, Inc.
NorthStar Income II is a public, non-traded real estate investment trust (REIT) sponsored by NorthStar Asset Management Group Inc. NorthStar Income II was formed to originate, acquire and asset manage a diversified portfolio of commercial real estate debt, select equity and securities investments.

This press release 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," "expects," "intends," "plans," 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 property manager 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, the ability to source compelling investments with experienced project sponsors, the ability to drive value through similar transactions, the ability to build momentum and ramp the NorthStar Income II portfolio, changes in market rates for commercial properties located in Atlanta, Georgia, future property values, the impact of any losses from our properties on cash flows and returns, property level cash flows, changes in economic conditions generally and the real estate and debt markets specifically, availability of capital, the ability to achieve targeted returns, generally accepted accounting principles, policies and rules applicable to REITs and the factors specified in in Part I, Item 1A of NorthStar Income II's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as well as in NorthStar Income II's other filings with the Securities and Exchange Commission. The foregoing list of factors is not exhaustive. All forward-looking statements included in this press release are based upon information available to NorthStar Income II on the date of this press release and NorthStar Income II is under no duty to update any of the forward-looking statements after the date of this press release to conform these statements to actual results.

SOURCE NorthStar Real Estate Income II, Inc.

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