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NorthStar Real Estate Income II Originates Loan

Non-traded REIT, NorthStar Real Estate Income II, Inc. (NorthStar Income II), recently announced that it has originated a senior secured loan to the tune of $17.5 million. The loan is secured by a portfolio that consists of three multifamily properties in the city of Atlanta, Georgia, that are owned by an experienced real estate developer.

The properties, which consist of 956,000 square feet and 893 units, recently underwent a $5.5 million renovation. Using proceeds from the loan, the borrower intends to make additional improvements to the properties.

Affiliates of the borrower have completed a total of five transactions with investment vehicles sponsored by NorthStar Asset Management group, totaling $91.5 million in aggregate loan proceeds.

“This transaction underscores the strength of our in-house origination platform and our ability to source compelling investments with experienced project sponsors,” stated Daniel R. Gilbert, chief executive officer and president of NorthStar. He continued, “Our investment team is committed to driving value through similar transactions as we continue to build momentum and ramp the NorthStar Income II portfolio.”

NorthStar Income II originates, acquires, and manages the assets of a diversified portfolio of commercial real estate debt, securities, and other select equity investments. As of July 2, 2014 the company’s portfolio consisted of four senior mortgage loans with a combined principal amount of $157.2 million.