NorthStar Income II Originates Senior Loan Secured by Full-Service Hotels

NEW YORK, Aug. 28, 2014 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it originated a $45.75 million senior loan secured by a portfolio of three full-service hotels in Florida and Pennsylvania. The loan term is 36 months with two one-year extension options available.

"We are pleased to announce the closing of NorthStar Income II's latest investment," said Daniel R. Gilbert, chief executive officer and president. "We continue to source new investment opportunities and diversify the NorthStar Income II portfolio through investments backed by strong sponsors with proven track records across geographic locations."

About the properties:

• Combined 680 rooms and more than 26,000 square feet of total meeting space.
• More than $17 million invested in the properties over the past 18 months.
• Additional improvements planned using senior loan proceeds.

NorthStar Income II's portfolio consists of six loans with an aggregate principal amount of $227.8 million as of August 28, 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" 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 managers of the properties to effectively manage the properties, 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, changes in market rates for commercial and hotel properties located in Pennsylvania and Florida, the ability to source new investment opportunities and diversify the NorthStar Income II portfolio, the ability to make additional investments backed by strong sponsors with proven track records across geographic locations, future property values, the impact of any losses from NorthStar Income II's 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, 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 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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