NorthStar Income II Originates $41.0 Million Senior Loan Secured by State-of-the-Art Data Center in Norwalk, Connecticut

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NorthStar Real Estate Income II, Inc.

Dec 18, 2014, 08:55 ET

NEW YORK, Dec. 18, 2014 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it originated a $41.0 million senior loan secured by a newly constructed, state-of-the-art data center located in Norwalk, Connecticut.

Investment highlights include:

The borrower is an experienced commercial real estate owner and operator with over 5.7 million square feet of commercial property under management throughout the United States.
The property was built-to-suit in 2014 and contains over 167,000 rentable square feet.
The property is 100% master-leased pursuant to a 21-year net lease.
The tenant, an affiliate of Cervalis LLC, is a leading provider of IT infrastructure solutions and has made a substantial capital investment toward the construction of the property.

This investment represents the third transaction completed between the borrower and investment vehicles sponsored by NorthStar Asset Management Group Inc., NorthStar Income II's sponsor, totaling $137.0 million. In January 2014, NorthStar Real Estate Income Trust, Inc. provided a $12.0 million mezzanine loan backed by an office property in Austin, Texas and in November 2014, NorthStar Income II provided an $84.0 million senior mortgage loan secured by a Class A office complex in Irving, TX.

"We continue to leverage our strong relationships with experienced borrowers to identify and source investment opportunities with positive credit characteristics that are consistent with our business plan," said Daniel R. Gilbert, chief executive officer and president. "This transaction demonstrates the strength of our sponsor's platform as we expand NorthStar Income II and create a diverse and balanced portfolio."

NorthStar Income II's portfolio consists of nine senior mortgage loans with a combined principal amount of $508.2 million and one subordinate interest totaling $24.9 million, as of December 18, 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," "may," "plans," "intends" 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 borrower to effectively manage the property securing the senior loan, the ability of the borrower to comply with the terms, including financial and other covenants, of the loan agreement, the ability of the property's tenant to comply with the terms of its lease, whether the borrower determines to extend the senior loan, changes in market rates for commercial properties located in Norwalk, Connecticut, the ability to leverage strong relationships with experienced borrowers to identify and source investment opportunities with positive credit characteristics that are consistent with NorthStar Income II's business plan, the ability to expand NorthStar Income II and create a diverse and balanced portfolio, future property values, the impact of any losses from NorthStar Income II's investments on cash flow and returns, property level cash flow, changes in economic conditions generally and the real estate and debt markets specifically, availability of capital, the ability to achieve targeted returns, changes to 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 release are based upon information available to NorthStar Income II on the date of this release and NorthStar Income II is under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.

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SOURCE NorthStar Real Estate Income II, Inc.