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Investment Approach

Investment
Approach

Investment Strategy

While NorthStar Income II may invest in commercial real estate securities and select equity investments, its primary focus is to originate and manage a diversified portfolio of commercial real estate loans. We will strive to diversify the portfolio by location and commercial property type, which could include office buildings, retail properties, apartments, hotels and industrial facilities.

 

How a Non-Traded, Debt-Focused REIT works:

DebtFocusedREITChart1.jpg

 

Diversification does not eliminate risk and does not assure better performance. 1) NorthStar funds its investments using proceeds from the offering as well as borrowings. 2) There is no guarantee of distributions. Distributions may be paid from sources other than cash flow from operations, including offering proceeds, borrowings or sales of assets and distributions may exceed earnings. Fees paid to the advisor were not determined on an arm’s length basis and reduce the amount the program can invest in income-producing assets and your overall return may be reduced.

 

Debt-focused REITs may:

  • Potentially Generate Cash Flow. In a typical debt-focused REIT, the distributions to investors are made from mortgage payments made by property owners. Conversely, distributions paid to equity investors are made after all property-related expenses are paid, including the mortgage.



  • There is no guarantee of distributions. Distributions have been paid from sources other than cash flow from operations, including offering proceeds, borrowings or sales of assets and distributions may exceed earnings.

  • Preserve Capital. Since NorthStar Income II is primarily focused on originating commercial real estate loans, its investment portfolio maybe cushioned against losses in declining markets. In the real estate capital structure, debt investments maintain a higher priority, meaning commercial real estate debt investors maintain a lower-risk position as property values change. While commercial real estate debt investments may provide greater downside protection, certain commercial real estate debt investments within the capital structure also vary in degree of risk.

This illustration is hypothetical in nature and is provided for informational purposes only. There can be no assurance that a debt-focused investment will protect against loss.

 

This website is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the prospectus. This website must be read in conjunction with the prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of the prospectus must be made available to you in connection with any offering. No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any other state securities regulator has approved or disapproved of our common stock, determined if the prospectus is truthful or complete or passed on or endorsed the merits of this offering. Any representation to the contrary is a criminal offense. Consult the prospectus for suitability standards in your state. NorthStar Income II is not available to residents of OH. Securities offered through NorthStar Securities, LLC, member FINRA/SIPC, an affiliate of and the dealer manager for NorthStar Income II. NorthStar Securities, LLC is doing business as NorthStar BD Securities, LLC (DE) in the following states: FL, GA, TX and WA.

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