NorthStar Income II Invests $370 Million in Two Transactions

NorthStar Real Estate Income II Inc., a publicly registered non-traded REIT, recently closed on two portfolio transactions in which it committed approximately $370 million, substantially all of the company’s current investible capital.

In the first transaction, NorthStar Income II originated an approximately $98 million subordinate interest investment in a portfolio of 39 industrial real estate properties located in 17 states. The 6 million-square-foot portfolio is currently 100 percent leased with an average remaining lease term of approximately 11 years.

The company also purchased a portfolio of 41 real estate private equity funds from NorthStar Realty Finance Limited Partnership, an affiliated company. The funds are managed by 20 real estate sponsors and have a total net asset value of approximately $344 million. The REIT, which acquired the funds for approximately $273 million – or 92.3 percent of the NAV, paid 25 percent of the purchase price at closing and will fund the remaining 75 percent on December 31, 2016. The properties within the portfolio are diversified by investment type, including mixed-use, multifamily, office and hotel properties and are located in 24 states and internationally.

NorthStar Income II commenced its $1.65 billion initial public offering in May 2013 and has raised $1.1 billion in investor equity since inception. The company owns a $1.8 billion portfolio comprised of 17 senior mortgage loans, four subordinate interest investments, one mezzanine loan, 24 real estate operating properties, three portfolios of real estate private equity funds and eight commercial mortgage-backed securities investments.

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