NEW YORK, Oct. 16, 2015 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced today that it recently originated two senior loans totaling $77.5 million.
Apartment Community | Austin, TX
- $36.5 million senior loan secured by a 421,000 square-foot, Class A apartment community centrally located in downtown Austin, Texas.
- The borrower is an affiliate of an experienced regional owner and operator of multifamily properties with over 16,000 units across 65 properties under management as of April 2015.
- Since 2010, approximately $1.8 million has been invested in capital improvements, including clubhouse upgrades, parking lot resurfacing and a new roof.
Beverly Hills Retail | Beverly Hills, CA
- $41.0 million senior loan secured by a 15,342 square foot retail property located within the Beverly Hills luxury shopping district.
- The borrower is an affiliate of an experienced real estate investment and management firm that owns and manages over 90 properties totaling in excess of three million square feet as of October 2015.
- The borrower recently invested $1.4 million in connection with the property with plans to fund an additional $2.8 million from proceeds of the senior loan in capital expenditures, tenant improvements and leasing commissions.
"Our sponsor's in-house origination capability continues to provide a platform to identify and source compelling commercial real estate debt investment opportunities to experienced real estate owners, operators and investors," said Daniel R. Gilbert, chief executive officer and president. "These two senior loans build upon and further diversify NorthStar Income II's over $1.0 billion portfolio with loans secured by quality assets, located in major metropolitan areas with strong demographics."
As of June 30, 2015, adjusted for acquisitions, originations and certain repayments through October 5, 2015, NorthStar Income II's $1.3 billion portfolio consists of 16 CRE debt investments with a combined principal amount of $743.1 million, two real estate equity investments with a total cost of $459.2 million and two portfolios of real estate private equity funds interests, with a carrying value of approximately $62.6 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 the properties securing the senior loans, the ability of the borrowers to comply with the terms, including financial and other covenants, of the loan agreements, the borrowers' ability to set aside the funds necessary to complete potential capital improvements to the properties, the ability of the borrowers or their affiliates to manage the properties effectively, including whether the properties will benefit from any of their amenities, whether the borrowers determine to extend the senior loans, NorthStar Income II's ability to finance the senior loans on credit facilities in the future, changes in market rates for commercial properties located in Austin, Texas and Beverly Hills, California, future property values, our sponsor's origination capabilities and whether they will continue to provide a platform to identify and source compelling commercial real estate debt investment opportunities to experienced real estate owners, operators and investors and whether NorthStar Income II would be allocated any such opportunities, the diversification of our portfolio, 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 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.