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NorthStar Real Estate Income II Enters into $100 Million Credit Facility

Non-traded REIT, NorthStar Real Estate Income II (NorthStar Income II), recently announced that it has entered into a master repurchase agreement with Deutsche Bank.

Formed in 2012 to originate, acquire, and asset manage a diversified portfolio of commercial real estate, NorthStar Income II will use the $100 million credit facility for financing first mortgage loans and senior loan participations that are secured by commercial real estate

The initial maturity date of the credit facility is July 2, 2015, with four one-year extensions at NorthStar Income II’s option. The credit facility will act as a revolving credit facility that can be paid down and then re-drawn.

“This facility represents a core component of our business strategy and highlights the importance of our sponsor’s established relationships with institutional financing partners,” said Daniel R. Gilbert, chief executive officer and president of NorthStar Income II. “As we continue to drive investment activity, this credit facility will provide efficient financing to selectively lever our debt investments and further diversify the NorthStar Income II portfolio,” he added.

As of July 16, 2014, NorthStar Income II’s portfolio consisted of four senior mortgage loans having a combined principal amount of $157.2 million.