NorthStar REIT Originates $9.5 Million Senior Mortgage Loan

NEW YORK, Oct. 17, 2011 /PRNewswire/ -- NorthStar Real Estate Income Trust, Inc. ("NorthStar REIT") announced today that it originated a $9.5MM Senior Mortgage Loan ("Senior Loan") for the refinancing of Ranch Lake Plaza, an approximately 85,000 square foot grocery-anchored retail center in the Bradenton submarket of Tampa, Florida (the "Property") owned by a full service real estate company which owns and operates over four million square feet of commercial property (the "Borrower").

The Property is anchored by Sweetbay Supermarkets ("Sweetbay"), which occupies approximately 58% of the Property.  Sweetbay was identified by its indirect parent company, Delhaize Group S.A. (the "Parent Company") as being the third largest grocery chain on the West Coast of Florida as of December 2010.  As of September 2011, Sweetbay had a remaining lease term of over 11 years and the lease is guaranteed by Delhaize America, Inc., an affiliate of the Parent Company.

The Senior Loan has a minimum interest rate of 8.25%, a 36 month term, with two one-year extension options available, subject to certain performance tests.  The current occupancy at the Property is approximately 96%, its loan-to-value ratio is approximately 76% and its current net operating income is approximately $1.1MM.

"When evaluating Senior Loan opportunities, we perform a broad range of detailed market and property underwriting as well as an examination of the Borrower's capabilities and track record," said Daniel Gilbert, President and Chief Investment Officer of NorthStar REIT, "The Senior Loan fits well into our comprehensive investment criteria and is a solid addition to our rapidly growing debt portfolio."

Through September 30, 2011, NorthStar REIT has directly originated three first mortgage loans with an outstanding principal amount of approximately $29MM and acquired three Commercial Mortgage Backed Securities ("CMBS") totaling approximately $34MM.  The NorthStar REIT portfolio is currently generating a weighted average cash yield of approximately 8.4% on invested equity.

About NorthStar Real Estate Income Trust

NorthStar REIT is a REIT formed to originate, invest in, and manage a diversified portfolio of commercial real estate debt, commercial real estate debt-related securities and select commercial real estate equity investments. The portfolio will be diversified across a variety of underlying commercial property types and geographic locations. It will be secured primarily by U.S.-based collateral. For more information, visit www.northstarreit.com.

NorthStar Realty Finance Corp., the sponsor of NorthStar REIT, is a publicly-traded commercial finance REIT that originates, acquires and manages portfolios of commercial real estate debt, commercial real estate securities and net lease properties. In addition, NorthStar Realty Finance Corp. engages in asset management and other activities related to real estate and finance. NorthStar Realty Finance Corp. has established an impressive track record for managing commercial real estate investments. As of June 30, 2011, the company had over $7.3 billion in assets under management.

For more information, visit www.nrfc.com.

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words like "anticipate," "believe," "plan," "hope," "goal," "expect," "future," "intend," "will," "could" and "should," and similar expressions. These statements are based on NorthStar REIT'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 REIT 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 REIT's expectations include, but are not limited to, NorthStar REIT's ability to continue to execute its investment strategy and grow its portfolio at the anticipated rate, the ability of the Borrower to maintain or increase occupancy and cash flows at the Property, future value, income-producing ability, impact of any losses on cash flows and returns, market rental rates and property level cash flows, changes in economic conditions generally and the real estate and debt markets specifically, availability of investment opportunities, availability of capital, ability to achieve targeted returns, generally accepted accounting principles and policies and rules applicable to REITs. Factors that could cause actual results to differ materially from those in the forward-looking statements are specified in NorthStar REIT's Annual Report on Form 10-K for the year ended December 31, 2010 and its other filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release. NorthStar REIT expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

THIS IS NEITHER AN OFFER TO SELL NOR AN OFFER TO BUY ANY SECURITIES DESCRIBED HEREIN. OFFERINGS ARE MADE ONLY BY MEANS OF A PROSPECTUS.

SOURCE NorthStar Real Estate Income Trust, Inc.