WOODBURY, NY—NorthStar Real Estate Income II, Inc. reports it originated a $144-million senior loan secured by a portfolio of 28 Long Island-based commercial office properties owned by RXR Realty, LLC.

NorthStar Income II funded $132 million at closing and expects to fund the remaining $12 million over the next 24 months, subject to the satisfaction of certain conditions by the borrower. The loan's initial term is 24 months, with up to 36 months of extension options available to the borrower. The investment was financed through one of NorthStar Income II's secured credit facilities.

RXR Realty says the financing, secured by 1.4 million square feet of commercial office properties in Woodbury, closed a few weeks ago.

The borrower is an institutional real estate fund managed by RXR Realty LLC, which has 7.5 billion in assets under management encompassing approximately 18.3 million square feet of commercial real estate, including approximately 5.7 million square feet on Long Island, as of June 30, 2014.

"We are very pleased to announce the closing of this investment by NorthStar Income II, which is secured by quality real estate assets owned by one of the New York metro area's top real estate investors," says Daniel R. Gilbert, chief executive officer and president. "Our relationships with investors such as RXR Realty, with extensive local market knowledge and experience, allow us to deliver compelling opportunities that will continue to differentiate our platform and lead to positive results over the long-term."

In December 2013, NorthStar Realty Finance Corp., which is externally managed by NorthStar Asset Management Group Inc., announced a strategic $340-million investment in RXR Realty. NSAM and RXR Realty plan to co-sponsor NorthStar/RXR New York Metro Income, Inc., a $2-billion public, non-traded real estate investment trust that will invest in commercial real estate located in the New York metropolitan area.