NorthStar Income II Originates $42.0 Million Senior Loan Secured by full-service Marriott hotel located in Coraopolis, PA

NEW YORK, March 9, 2015 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it originated a $42.0 million senior loan secured by a 318-room Marriott-branded full-service hotel located in Coraopolis, Pennsylvania.

Investment highlights include:

• Strong location approximately five miles from the Pittsburgh International Airport and 12 miles west of downtown Pittsburgh. The property is highly visible and easily accessed from the primary thoroughfare connecting the Pittsburgh central business district with the airport;

• The property benefits from the strength of the Marriott International brand and reservation network; and

• The property was recently renovated and the borrower plans to complete an additional $4.0 million in capital improvements using proceeds from the senior loan, for a total of $8.3 million in capital expenditures.

This investment represents the fourth transaction completed between the borrower and investment programs sponsored by NorthStar Asset Management Group Inc. (NSAM), NorthStar Income II's sponsor, totaling $154.5 million.

"We continue to build upon our existing relationships with established repeat borrowers to identify and source high-quality investments that are accretive to our portfolio," said Daniel R. Gilbert, chief executive officer and president. "This loan further demonstrates our sponsor's ability to create flexible, custom-tailored solutions that foster meaningful long-term relationships with our borrowers."

NorthStar Income II's portfolio consists of ten senior mortgage loans with a combined principal amount of $550.2 million and one subordinate interest totaling $24.9 million, as of March 9, 2015.

About NorthStar Real Estate Income II, Inc.
NorthStar Income II is a public, non-traded real estate investment trust (REIT) sponsored by NSAM. 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 borrower's ability to effectively manage the property securing the senior loan, including its ability to maintain the brand license for the property, whether the property will derive any benefit from its brand, whether the borrower successfully completes an additional $4.0 million in capital improvements to the property, the borrower's ability to comply with the terms, including financial and other covenants, of the loan agreement, whether the borrower determines to extend the senior loan, changes in market rates and conditions for commercial properties, particularly hotels, located in Coraopolis, Pennsylvania, NorthStar Income II's ability to build upon existing relationships with established repeat borrowers, NorthStar Income II's ability to identify and source high-quality investments that are accretive to its portfolio, NorthStar Income II's ability to create flexible, custom-tailored solutions that foster meaningful long-term relationships with borrowers, 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.

SOURCE NorthStar Real Estate Income II, Inc.

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