NorthStar Income Originates $43.3 Million Senior Loan

NEW YORK, Aug. 23, 2012 /PRNewswire/ -- NorthStar Real Estate Income Trust, Inc. (NorthStar Income), directly originated a $43.3 million senior loan secured by three contiguous office properties located in the central business district of Richmond, VA, known as the SunTrust Center. The proceeds of the loan will be used to partially refinance the property and to fund reserves for tenant improvements and leasing commissions.

A majority of the property is leased to SunTrust Banks, Inc. (SunTrust) through December 2017, with eight consecutive renewal options for five years each.  SunTrust, an investment-grade rated company, has been a tenant since 1998 and provides stability to the property's cash flow.  In addition, the owner of the property has an established track record of successfully owning and managing high-quality office properties throughout the Southeastern United States.  Since acquiring the property in 2007 for $75.6 million, the owner has invested over $4.3 million of additional capital to maintain and improve the property. 

Daniel R. Gilbert, president and chief investment officer of NorthStar Income remarked, "This senior loan further demonstrates our ability to secure high-quality transactions through established relationships created by our sponsor." Mr. Gilbert elaborated, "Having a sponsor with $7 billion of assets under management allows NorthStar Income access to many well-regarded borrowers and commercial real estate operators. As we grow our equity capital base, and cultivate our relationships, we believe our ability to capitalize on these desirable opportunities is expected to increase, generating accretive yields for our stockholders."

Since going effective in July, 2011, NorthStar Income has successfully originated over $367.5 million in commercial real estate loans. NorthStar Income's total portfolio, as of August 23, 2012, consists of 17 loans and one commercial real estate security with an overall weight average leveraged yield of approximately 13.7%.

About NorthStar Real Estate Income Trust, Inc. (NorthStar Income)
NorthStar Income 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 and is secured primarily by U.S.-based collateral.  For more information, visit www.northstarreit.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 "seek," "believe," "will," and similar expressions.  These statements are based on NorthStar Income'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 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's expectations include, but are not limited to, whether and to what extent NorthStar Income will be able to secure high-quality transactions through its sponsor's relationships or otherwise, NorthStar Income's ability to capitalize on desirable opportunities will increase, whether current yields will continue in the future, whether NorthStar Income will be able generate accretive yields for its stockholders, 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, impact of local economics, 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 Income's Annual Report on Form 10-K for the year ended December 31, 2011 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 Income 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.