NorthStar Income II Originates Three Debt Investments Totaling Over $112 Million

13 Jan, 2016, 08:00 ET from NorthStar Real Estate Income II, Inc.

NEW YORK, Jan. 13, 2016 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it recently originated a $46.0 million senior loan and two subordinate interest investments totaling $66.7 million.

Hotel Portfolio | Atlanta, Georgia

  • $46.0 million senior loan secured by a 101-room full-service hotel located in midtown Atlanta and a 102-room full-service hotel located in downtown Atlanta, totaling over 300,000 square feet of hotel space and over 20,000 of square feet of retail space.
  • The properties are located in close proximity to main thoroughfares, public transportation and major cultural and educational landmarks.
  • $4.24 million (approximately $21,000 per room) in property improvements will be completed by the owner in connection with an approved property improvement plan.

Mid-Atlantic Multifamily Portfolio | New Jersey, Pennsylvania and Delaware

  • $38.1 million subordinate interest secured by a 12-property, 2,811-unit multifamily portfolio with properties located in close proximity to major metropolitan areas including New York City and Philadelphia.
  • The portfolio contains over 2.2 million square feet of residential space and over 12,000 square feet of retail space.
  • The purchaser, an affiliate of a New York City-based real estate investment fund, intends to implement a total of $21.1 million in required capital improvements to the portfolio (approximately $7,501 per unit).

East Village Development | New York City, New York

  • $28.6 million subordinate interest to partially capitalize the development of a $206.2 million, 82-unit six-story multifamily project in New York City, which is expected to be completed in 2018.
  • The development is located on a full block in the heart of the East Village and will be comprised of over 100,000 sellable square feet and various full-service luxury amenities, including a 24-hour attended lobby, swimming pool and fitness and spa facilities.
  • The project sponsor is a commercial real estate developer with substantial local experience.

"Our sponsor's in-house origination capabilities continue to provide a platform to identify and source compelling commercial real estate investment opportunities throughout the capital structure," said Daniel R. Gilbert, chief executive officer and president. "The collateral underlying these investments are located in major metropolitan areas with strong demographics and population growth. The addition of these investments further diversifies NorthStar Income II's $1.5 billion portfolio with quality investments backed by experienced real estate owners, operators and developers."

As of September 30, 2015, adjusted for acquisitions, originations and certain repayments through January 10, 2016, NorthStar Income II's $1.5 billion portfolio consists of 20 CRE debt investments with a combined principal amount of $909.9 million, 24 real estate equity investments with a total cost of $464.3 million, two portfolios of real estate private equity funds interests with a carrying value of approximately $52.3 million and three CRE securities with a combined principal amount of $25.5 million.

About NorthStar Real Estate Income II, Inc.
NorthStar Income II is a public, non-traded 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 borrowers to effectively manage their respective properties securing the senior loan or backing the subordinate interests, as applicable; the ability of the borrowers or property owners to comply with the terms, including financial and other covenants, of the loan agreement or agreements governing the subordinate interests, as applicable; the ability of the property owners to complete planned property improvements to their respective properties within the contemplated timeframe or at all, including whether the East Village development will be completed within the contemplated timeframe or at all; changes in market demand and rental rates for commercial properties and condominiums located in New York, New Jersey, Pennsylvania and Delaware, as applicable; the ability of NorthStar Income II's advisor to source investments, compelling or otherwise, in the future; the diversification of NorthStar Income II's portfolio, as well as the quality of its investments; future property values; the impact of any losses from NorthStar Income II's investments on cash flow and returns; changes in economic conditions generally and the real estate and debt markets specifically; NorthStar Income II's fundraising capabilities and the 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, 2014, 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 press release and NorthStar Income II is under no duty to update any of the forward-looking statements after the date of this press release to conform these statements to actual results.

SOURCE NorthStar Real Estate Income II, Inc.