NEW YORK, April 15, 2014 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it completed its investment in a $75 million senior loan secured by a 500-room Hilton hotel in Dallas, Texas. An affiliate of Hilton Hotels & Resorts manages the 452,000 square-foot hotel, which is located within the 1.6 million square-foot Lincoln Centre office complex. NorthStar Income II funded the investment with a combination of available cash and an advance on its secured term credit facility.
"This transaction demonstrates our continued execution of our core business plan to originate well-structured loans secured by high quality real estate that we can prudently finance to generate attractive returns for our shareholders," said Daniel R. Gilbert, chief executive officer and president. "The strength of our in-house origination platform, our real estate and structuring expertise and flexible financing sources should continue to allow us to build a high quality portfolio and to invest our capital effectively."
As of April 15, 2014, NorthStar Income II's portfolio consists of three commercial real estate debt investments with a combined principal balance of $139.7 million.
About NorthStar Real Estate Income II, Inc.
NorthStar Income II is a public, non-traded corporation that intends to qualify as a real estate investment trust (REIT) sponsored by NorthStar Realty Finance Corp. (NYSE: NRF). The company was formed to originate, acquire and asset manage a diversified portfolio of commercial real estate debt, securities and select equity investments. Visit http://www.northstarreit.com/income2/ for more information about NorthStar Income II.
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," "expects," "intends," "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 property manager to effectively manage the property, the ability of the borrower to comply with the terms, including financial and other covenants, of the senior loan, whether the borrower determines to extend the senior loan, the ability to obtain efficient financing for attractive debt investments that are consistent with our business strategy, the ability to source opportunities secured by similarly well-managed, high-quality real estate assets, the ability to further build and diversify NorthStar Income II's portfolio, changes in market rates for commercial properties located in Dallas, Texas, future property values, the impact of any losses from our 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, 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 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.
This press release is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the prospectus. This press release must be read in conjunction with the prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of the prospectus must be made available to you in connection with any offering. No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the Securities and Exchange Commission, the Attorney-General of the State of New York nor any other state securities regulator has approved or disapproved of our common stock, determined if the prospectus is truthful or complete or passed on or endorsed the merits of the offering. Any representation to the contrary is a criminal offense.
SOURCE NorthStar Real Estate Income II, Inc.