NorthStar REIT Recently Closes Five Loans Totaling $69 Million

NEW YORK, Jan. 25, 2012 /PRNewswire/ -- NorthStar Real Estate Income Trust, Inc. (NorthStar REIT), is pleased to announce the direct origination of five new real estate loans totaling $69.0 million, with a weighted average current interest rate of 9.15%.  The proceeds from the loans, which are summarized below, were used to finance a variety of different real estate properties, further diversifying NorthStar REIT's portfolio.

• January 18, 2012: $13.5 million first mortgage senior loan secured by a 693-unit multifamily property in Jacksonville, Florida;
• January 6, 2012: $12.0 million first mortgage senior loan secured by a 69-room hotel located in Miami Beach, Florida;
• December 29, 2011:  $9.2 million first mortgage senior loan secured by a 111-room hotel located in Panama City, Florida;
• December 16, 2011: $29.8 million in four cross-collateralized, cross-defaulted first mortgage loans secured by four hotel properties containing 500 rooms located in Virginia's greater Hampton Roads MSA; and
• December 9, 2011: $4.5 million mezzanine loan secured by a pledge of ownership interests in four assisted living facilities containing 390 beds located in El Paso, Texas.

"These five loans are consistent with the investment objectives of NorthStar REIT," said Daniel Gilbert, President and Chief Investment Officer of NorthStar REIT.  "We continue to demonstrate NorthStar REIT's ability to identify and capitalize on loans that aim to generate consistent current income while providing downside protection for investor capital."

Together with these five loans, NorthStar REIT has invested over $132.7 million of capital in eight loans and three Commercial Mortgage Backed Securities.  The portfolio has an overall current yield of approximately 8.9%. 

About NorthStar Real Estate Income Trust, Inc.

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 and is 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, structures 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 September 30, 2011, the company had $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, whether the five loans will perform consistently with NorthStar REIT's objectives, whether NorthStar REIT will be able to identify and capitalize on loans, whether NorthStar REIT's loans will generate income while providing downside protection for investor capital, whether current yields will continue in the future, the ability of the owners to maintain or increase occupancy and cash flows at the underlying the properties, 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 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.