NorthStar Income II Originates $84.0 Million Senior Loan Secured by Class A Office Complex in Irving, Texas

NEW YORK, Nov. 20, 2014 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it originated an $84.0 million senior loan secured by a Class A office complex in Irving, Texas. NorthStar Income II initially funded $63.0 million of the senior loan and intends to fund the remaining $21.0 million over the 36-month loan term.

Investment highlights include:

• The borrower is an experienced commercial real estate owner and operator that manages over 5.7 million square feet of commercial property, including more than 3.0 million square feet of Class A office space in Texas.
• Constructed in 2001, the property's two adjoining buildings are comprised of more than 526,000 rentable square feet.
• Well located with convenient access to major freeways, the property is considered one of the highest quality assets in its submarket, which has been historically well occupied.

This investment represents the second transaction completed between the borrower and investment vehicles sponsored by NorthStar Asset Management Group Inc., NorthStar Income II's sponsor, totaling $96.0 million. In January 2014, NorthStar Real Estate Income Trust, Inc. provided mezzanine financing to partially capitalize the borrower's acquisition of an office property located in Austin, Texas.

"We continue to utilize our relationship-driven, in-house origination platform to identify and source compelling investment opportunities with experienced repeat borrowers," said Daniel R. Gilbert, chief executive officer and president. "Backed by a leading sponsor with a high-quality, Class A asset, this investment represents another strategic addition that further diversifies the NorthStar Income II portfolio."

NorthStar Income II's portfolio consists of seven senior mortgage loans with a combined principal amount of $431.0 million and one subordinate interest totaling $24.9 million, as of November 20, 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, whether the borrower determines to extend the senior loan, whether the current tenants at the property renew their leases, changes in market rates for commercial properties located in Irving, Texas, the ability to utilize our relationship-driven in-house origination platform to identify and source compelling investment opportunities with experienced repeat 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 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 report and NorthStar Income II is under no duty to update any of the forward-looking statements after the date of this report to conform these statements to actual results.

SOURCE NorthStar Real Estate Income II, Inc.

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