NEW YORK, Nov. 9, 2016 /PRNewswire/ -- NorthStar Real Estate Income II, Inc. (NorthStar Income II) announced that it priced a $284.2 million non-recourse, match-term, non-mark-to-market financing transaction in the form of a commercial mortgage-backed securitization (CMBS), NorthStar 2016-1, at a weighted average cost of funds of LIBOR + 2.07% and an advance rate of 68% ( $193 million of investment grade bonds issued and sold). The transaction is collateralized by a pool of 10 commercial real estate mortgage loans, all but one of which was directly originated by NorthStar Income II and three senior participations originated by NorthStar Real Estate Income Trust, Inc. (NorthStar Income). NorthStar Income II contributed approximately $254.7 million of collateral to the transaction, and NorthStar Income contributed approximately $29.5 million of collateral to the transaction. The transaction closed on November 9, 2016. Both NorthStar Income II and NorthStar Income are public, non-traded real estate investment trusts sponsored by NorthStar Asset Management Group Inc. (NorthStar, NYSE: NSAM) that together own over $3.6 billion of commercial real estate (CRE) debt and CRE-related investments. "This is an extremely efficient transaction for NorthStar Income II and not only provides us with non-recourse, match-term, non-mark-to-market financing for our debt investments, but also allows us to recycle borrowing capacity on our credit facilities," commented Daniel R. Gilbert, chief executive officer and president. "NorthStar has been a market leader in securitization financing transactions, having executed over $2.9 billion in similar debt financings across its managed companies since 2004, and we continue to utilize these structures with a goal of benefiting our shareholders."