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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12.6pt 0 10pt; text-align: center"><B>UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0; text-align: center"><FONT STYLE="letter-spacing: 1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: 1pt"><B>FORM
8-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: 1pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5.4pt 0 ; text-align: center"><B>Date of report (Date of earliest
event reported):<BR>
October 15, 2013</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0.15in 0 10pt; text-align: center"><B>NorthStar
Real Estate Income II, Inc.</B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0; text-align: center"><B>(Exact Name of Registrant as Specified
in Charter)</B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 16.2pt 0 10pt 0.95in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%; text-align: center"><B>Maryland</B></TD>
    <TD STYLE="width: 34%; text-align: center"><B>No. 333-185640</B></TD>
    <TD STYLE="width: 33%; text-align: center"><B>No. 90-0916682</B></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>(State or Other Jurisdiction <BR>
of Incorporation)</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>(Commission File Number)</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>(IRS Employer <BR>
Identification No.)</B></FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 1.8pt 0 0; text-align: center"><B>399 Park Avenue, 18th Floor, New
York, New York 10022</B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.2pt">(Address
of Principal Executive Offices) (Zip Code)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Registrant&rsquo;s telephone number, including
area code: (212)&nbsp;547-2600<BR>
<BR>
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Not applicable</B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Former Name or Former Address, if
Changed Since Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0"><BR><FONT STYLE="letter-spacing: -0.1pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant </FONT>under any of the following provisions (<I>see </I>General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Wingdings">o
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Wingdings">o
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Wingdings">o
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.25in"><FONT STYLE="font-family: Wingdings">o </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT>&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><B>Item 1.01. Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Entry into a Credit Facility</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On October 15, 2013, CB Loan NT-II, LLC (&ldquo;CB Loan II&rdquo;),
an indirect wholly-owned subsidiary of NorthStar Real Estate Income II, Inc. (&ldquo;NorthStar Income II&rdquo;), entered into
a Master Repurchase Agreement (the &ldquo;Citi Credit Facility&rdquo;) with Citibank, N.A. (&ldquo;Citibank&rdquo;). The Citi Credit
Facility provides up to $100 million to finance first mortgage loans and senior loan participations secured by commercial real
estate, as described in more detail in the Citi Credit Facility documentation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Advances under the Citi Credit Facility accrue interest at per annum
rates ranging from the one-month London Interbank Offered Rate (the &ldquo;LIBOR Rate&rdquo;), plus a spread of 2.50% to 3.00%.
The Citi Credit Facility provides for advance rates up to 75%, depending on asset type, subject to adjustment. The initial maturity
date of the Citi Credit Facility is October 15, 2016 (the &ldquo;Initial Term&rdquo;), with a one-year extension at NorthStar Income
II&rsquo;s option, which may be exercised upon the satisfaction of certain conditions set forth in the Citi Credit Facility. During
the Initial Term, the Citi Credit Facility acts as a revolving credit facility that can be paid down and
subsequently re-drawn.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In connection with the Citi Credit Facility, NorthStar Income II
entered into a Limited Guaranty (the &ldquo;Guaranty&rdquo;), under which NorthStar Income II agreed to guaranty certain obligations
under the Citi Credit Facility. NorthStar Income II also agreed to guaranty the obligations under the Citi Credit Facility if CB
Loan II engages in certain customary bad acts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Citi Credit Facility and Guaranty contain representations, warranties,
covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of these types.
The Citi Credit Facility contains a financial covenant that requires CB Loan II to maintain at least $3.75 million and a
maximum of $15.0 million in unrestricted cash, depending on the amount drawn, as of the date of the first funding of a mortgage
or participation, and at all times thereafter during the term of the Citi Credit Facility. In addition, the Guaranty contains financial
covenants that require NorthStar Income II to maintain: (i) a tangible net worth, as defined in the Guaranty, equal to the lesser
of (a) total equity equal to $162,000, subject to increases equal to 80% of aggregate net proceeds raised from NorthStar
Income II&rsquo;s initial public offering of common stock and (b) $250.0 million; (ii) a ratio of EBITDA, as defined in the
Guaranty, to fixed charges of not less than 1.4x; and (iii) a ratio of total borrowings to total equity not greater than 300%.
In addition, Citibank may stop making advances under the Citi Credit Facility if any conditions precedent to funding are not
satisfied, including if any two of Messrs. Hamamoto, Gilbert or Tylis are no longer employed by NorthStar Realty Finance Corp.
and are not replaced by persons acceptable to Citibank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The foregoing summary does not purport to be a complete description
and is qualified in its entirety by reference to the Citi Credit Facility and the Guaranty, which are filed as exhibits to this
current report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><B>Item 2.03. Creation of a Direct Financial Obligation
or an Obligation under an Off Balance Sheet Arrangement of a Registrant.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The information set forth under Item 1.01 of this Current Report
on Form 8-K is incorporated by reference into this Item 2.03.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Safe-Harbor Statement </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: black">This Current Report on Form 8-K
contains certain &ldquo;forward-looking statements&rdquo; within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or Exchange
Act. Forward-looking statements are generally identifiable by use of forward-looking terminology such as &ldquo;will,&rdquo;
&ldquo;may&rdquo; or other similar words or expressions. These statements are based on NorthStar Income II&rsquo;s current
expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements; NorthStar Income II can give no assurance that its
expectations will be attained. Forward-looking statements are necessarily speculative in nature, and it can be expected that
some or all of the assumptions underlying any forward-looking statements will not materialize or will vary significantly from
actual results. Variations of assumptions and results may be material. </FONT>Factors that could cause actual results to
differ materially from NorthStar Income II&rsquo;s expectations include, but are not limited to, the ability to raise
additional capital, the ability to comply with the <FONT STYLE="color: black">representations, warranties, covenants and
conditions precedent to funding contained in the </FONT>Citi Credit Facility and Guaranty, the ability to raise and maintain
the unrestricted cash balance required under the Citi Credit Facility, the availability of investment opportunities, the
ability use the Citi Credit Facility to finance first mortgage loans and senior participations and the factors specified
in NorthStar Income II&rsquo;s filings with the Securities and Exchange Commission. The foregoing list of factors is not
exhaustive. All forward-looking statements included in this Current Report on Form 8-K are based upon information available
to NorthStar Income II on the date of this report and NorthStar Income II is under no duty to update any of the
forward-looking statements after the date of this report to conform these statements to actual results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 9.01</B>. <B>Exhibits.</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>



<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Exhibits.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 10pt; border-bottom: Black 0.5pt solid"><B>Exhibit Number</B></P></TD>
    <TD STYLE="width: 82%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; border-bottom: Black 0.5pt solid"><B>Description</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Master Repurchase Agreement, dated October 15, 2013, between CB Loan NT-II, LLC and Citibank, N.A.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Limited
    Guaranty, made as of October 15, 2013, by NorthStar Real Estate Income II, Inc. for the benefit of Citibank, N.A.</FONT></TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.05in 10pt 0; text-indent: 0.25in">Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.05in 10pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.05in 10pt 0; text-indent: 0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">NORTHSTAR REAL ESTATE INCOME II, INC.</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Date: October 16, 2013</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Ronald J. Lieberman<FONT STYLE="font-variant: small-caps">&#9;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Ronald J. Lieberman<BR>Executive Vice President, General Counsel and Secretary</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Exhibit&nbsp;Number</B></FONT></TD>
    <TD STYLE="width: 2%; text-align: center"></TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"></TD>
    <TD STYLE="vertical-align: bottom"></TD>
    <TD STYLE="vertical-align: top"></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center; padding-top: 6pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 6pt"></TD>
    <TD STYLE="vertical-align: top; padding-top: 6pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Master Repurchase
    Agreement, dated October 15, 2013, between CB Loan NT-II, LLC and Citibank, N.A.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center; padding-top: 6pt"></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 6pt"></TD>
    <TD STYLE="vertical-align: top; padding-top: 6pt"></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center; padding-top: 6pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.2</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 6pt"></TD>
    <TD STYLE="vertical-align: top; padding-top: 6pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Limited Guaranty, made as of  October 15, 2013, by NorthStar Real Estate Income II,&nbsp;Inc. for the benefit of Citibank, N.A.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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{"company-data": {"conformed-name": "NorthStar Real Estate Income II, Inc.", "cik": "0001564657", "assigned-sic": "6798", "irs-number": "900916682", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-185640", "film-number": "131154720"}, "business-address": {"street1": "399 PARK AVENUE", "street2": "18TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "2125472600"}, "mail-address": {"street1": "399 PARK AVENUE", "street2": "18TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest
event reported):
October 15, 2013
NorthStar
Real Estate Income II, Inc.
(Exact Name of Registrant as Specified
in Charter)
Maryland
No. 333-185640
No. 90-0916682
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
399 Park Avenue, 18th Floor, New
York, New York 10022
(Address
of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including
area code: (212) 547-2600
Not applicable
(Former Name or Former Address, if
Changed Since Last Report)
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Item 1.01. Entry into a Material Definitive Agreement.
Entry into a Credit Facility
On October 15, 2013, CB Loan NT-II, LLC ("CB Loan II"),
an indirect wholly-owned subsidiary of NorthStar Real Estate Income II, Inc. ("NorthStar Income II"), entered into
a Master Repurchase Agreement (the "Citi Credit Facility") with Citibank, N.A. ("Citibank"). The Citi Credit
Facility provides up to $100 million to finance first mortgage loans and senior loan participations secured by commercial real
estate, as described in more detail in the Citi Credit Facility documentation.
Advances under the Citi Credit Facility accrue interest at per annum
rates ranging from the one-month London Interbank Offered Rate (the "LIBOR Rate"), plus a spread of 2.50% to 3.00%.
The Citi Credit Facility provides for advance rates up to 75%, depending on asset type, subject to adjustment. The initial maturity
date of the Citi Credit Facility is October 15, 2016 (the "Initial Term"), with a one-year extension at NorthStar Income
II's option, which may be exercised upon the satisfaction of certain conditions set forth in the Citi Credit Facility. During
the Initial Term, the Citi Credit Facility acts as a revolving credit facility that can be paid down and
subsequently re-drawn.
In connection with the Citi Credit Facility, NorthStar Income II
entered into a Limited Guaranty (the "Guaranty"), under which NorthStar Income II agreed to guaranty certain obligations
under the Citi Credit Facility. NorthStar Income II also agreed to guaranty the obligations under the Citi Credit Facility if CB
Loan II engages in certain customary bad acts.
The Citi Credit Facility and Guaranty contain representations, warranties,
covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of these types.
The Citi Credit Facility contains a financial covenant that requires CB Loan II to maintain at least $3.75 million and a
maximum of $15.0 million in unrestricted cash, depending on the amount drawn, as of the date of the first funding of a mortgage
or participation, and at all times thereafter during the term of the Citi Credit Facility. In addition, the Guaranty contains financial
covenants that require NorthStar Income II to maintain: (i) a tangible net worth, as defined in the Guaranty, equal to the lesser
of (a) total equity equal to $162,000, subject to increases equal to 80% of aggregate net proceeds raised from NorthStar
Income II's initial public offering of common stock and (b) $250.0 million; (ii) a ratio of EBITDA, as defined in the
Guaranty, to fixed charges of not less than 1.4x; and (iii) a ratio of total borrowings to total equity not greater than 300%.
In addition, Citibank may stop making advances under the Citi Credit Facility if any conditions precedent to funding are not
satisfied, including if any two of Messrs. Hamamoto, Gilbert or Tylis are no longer employed by NorthStar Realty Finance Corp.
and are not replaced by persons acceptable to Citibank.
The foregoing summary does not purport to be a complete description
and is qualified in its entirety by reference to the Citi Credit Facility and the Guaranty, which are filed as exhibits to this
current report on Form 8-K.
Item 2.03. Creation of a Direct Financial Obligation
or an Obligation under an Off Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report
on Form 8-K is incorporated by reference into this Item 2.03.
Safe-Harbor Statement
This Current Report on Form 8-K
contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or Exchange
Act. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "will,"
"may" or other similar words or expressions. These statements are based on NorthStar Income II's current
expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements; NorthStar Income II can give no assurance that its
expectations will be attained. Forward-looking statements are necessarily speculative in nature, and it can be expected that
some or all of the assumptions underlying any forward-looking statements will not materialize or will vary significantly from
actual results. Variations of assumptions and results may be material.
Factors that could cause actual results to
differ materially from NorthStar Income II's expectations include, but are not limited to, the ability to raise
additional capital, the ability to comply with the
representations, warranties, covenants and
conditions precedent to funding contained in the
Citi Credit Facility and Guaranty, the ability to raise and maintain
the unrestricted cash balance required under the Citi Credit Facility, the availability of investment opportunities, the
ability use the Citi Credit Facility to finance first mortgage loans and senior participations and the factors specified
in NorthStar Income II's filings with the Securities and Exchange Commission. The foregoing list of factors is not
exhaustive. All forward-looking statements included in this Current Report on Form 8-K are based upon information available
to NorthStar Income II on the date of this report and NorthStar Income II is under no duty to update any of the
forward-looking statements after the date of this report to conform these statements to actual results.
Item 9.01
.
Exhibits.
(d)
Exhibits.
Exhibit Number
Description
10.1
Master Repurchase Agreement, dated October 15, 2013, between CB Loan NT-II, LLC and Citibank, N.A.
10.2
Limited
    Guaranty, made as of October 15, 2013, by NorthStar Real Estate Income II, Inc. for the benefit of Citibank, N.A.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NORTHSTAR REAL ESTATE INCOME II, INC.
Date: October 16, 2013
By:
/s/ Ronald J. Lieberman
Ronald J. Lieberman
Executive Vice President, General Counsel and Secretary
EXHIBIT INDEX
Exhibit Number
Description
10.1
Master Repurchase
    Agreement, dated October 15, 2013, between CB Loan NT-II, LLC and Citibank, N.A.
10.2
Limited Guaranty, made as of  October 15, 2013, by NorthStar Real Estate Income II, Inc. for the benefit of Citibank, N.A.