NorthStar Income II Originates $39.2 Million Senior Loan in Norfolk, Virginia

NEW YORK, March 10, 2014 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it directly originated a $39.2 million senior loan secured by a 225-unit, class-A multifamily property located in Norfolk, Virginia.

The property, located in Norfolk's Ghent Historic District, offers luxury apartments in close proximity to major transportation routes and regional employers and also contains 14,800 square feet of ground-floor retail space. The property is managed by an affiliate of the borrower, an experienced real estate owner and operator that manages over 8,000 multifamily units located throughout the eastern United States.

NorthStar Income II funded the investment with a combination of available cash and a $19.6 million advance on its secured term credit facility.

Daniel R. Gilbert, chief executive officer and president, commented, "This transaction demonstrates the strength of our direct origination platform and our ability to obtain efficient financing for debt investments backed by well-located, high-quality real estate assets. As NorthStar Income II expands, we feel confident that we will be able to capitalize on similar compelling opportunities that are consistent with our business plan."

As of March 10, 2014, NorthStar Income II's portfolio consists of two commercial real estate debt investments with a combined principal balance of $64.7 million.

About NorthStar Real Estate Income II, Inc.
NorthStar Income II is a public, non-traded corporation that intends to qualify as a real estate investment trust (REIT) sponsored by NorthStar Realty Finance Corp. (NYSE: NRF).  The company was formed to originate, acquire and asset manage a diversified portfolio of commercial real estate debt, securities and select equity 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 obtain efficient financing for debt investments backed by well-located, high-quality real estate assets, the ability to expand, the ability to capitalize on similar compelling opportunities that are consistent with our business plan, changes in market rates for commercial properties located in Norfolk, Virginia, 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 described in NorthStar Income II's 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.

This press release is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the prospectus. This press release must be read in conjunction with the prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of the prospectus must be made available to you in connection with any offering.  No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the Securities and Exchange Commission, the Attorney-General of the State of New York nor any other state securities regulator has approved or disapproved of our common stock, determined if the prospectus is truthful or complete or passed on or endorsed the merits of the offering. Any representation to the contrary is a criminal offense.

SOURCE NorthStar Real Estate Income II, Inc.

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