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):

January 18, 2012

NorthStar Real Estate Income Trust, Inc.

(Exact Name of Registrant as Specified in Charter)

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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

On January 18, 2012 (the “Closing Date”), NorthStar Real Estate Income Trust, Inc. (the “Company”), through a subsidiary, directly originated a senior loan in the amount of $13.5 million (the “Senior Loan”) to an unrelated third-party borrower (the “Owner”). The Senior Loan is secured by a 693-unit multifamily property consisting of 61 adjacent buildings located in Jacksonville, Florida (the “Property”). The Property will be managed by the Owner who specializes in managing multifamily properties and currently manages over 7,000 units in the Southeast U.S.

The Company funded the Senior Loan with proceeds from its ongoing initial public offering. The proceeds from the Senior Loan, together with $3.5 million of equity contributed by the Owner, were used to fund: (i) the acquisition of the Property and related closing costs; (ii) a $1.0 million interest reserve account controlled by the Company (the “Interest Reserve Account”); and (iii) a $3.1 million renovation reserve account controlled by the Company to fund a renovation of the Property. In addition, the Owner has guaranteed the timely and on-budget completion of immediate and short-term capital repairs and to fund additional capital into the Interest Reserve Account any time its balance falls below $300,000. During the term of the Senior Loan, the members of the Owner are obligated to maintain a minimum collective net worth and liquidity.

The Senior Loan bears interest at a floating rate of 5.75% plus the one-month London Interbank Offered Rate (the “LIBOR Rate”), but at no point shall the LIBOR Rate be less than 4.00%, resulting in a minimum interest rate of 9.75% per annum. In addition, the Company earned an upfront fee equal to 1.0% of the Senior Loan and will earn a fee equal to 1.0% of the original principal amount upon repayment.

The initial term of the Senior Loan is 36 months, with two one-year extension options available to the Owner, subject to the satisfaction of certain performance tests and the Owner paying a fee equal to 0.25% of the amount being extended for each extension. The Senior Loan may be prepaid in whole or in part during the first 24 months, provided the Owner pays the remaining interest due on the amount prepaid through the first 24 months. Thereafter, the Senior Loan may be prepaid in whole or in part without penalty.

As of the Closing Date, the current occupancy at the Property was approximately 66% and the loan-to-cost ratio (“LTC Ratio”) was approximately 80%. The LTC ratio is the principal amount of the Senior Loan divided by the total cost to the Owner to fund the acquisition of the Property, including closing costs, escrows and applicable reserves on the date the Company originated the Senior Loan.

Safe Harbor Statement

Certain items in this Current Report on Form 8-K may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words like “anticipate,” “believe,” “plan,” “hope,” “goal,” “expect,” “future,” “intend,” “will,” “could” and “should” and similar expressions. These statements are based on the Company’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; the Company 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 the Company’s expectations include, but are not limited to, the ability of the Owner to successfully complete the renovation of the Property, if at all, occupancy and property level cash flows at the Property, future value, income-producing ability, impact of any losses on cash flows and returns, market rental rates, local economies where the Property is located, the Company’s ability to collect on the guarantees, changes in economic conditions generally and the real estate and debt markets specifically, availability of capital, ability to achieve targeted returns, generally accepted accounting principles and policies and rules applicable to REITs. Factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and its other filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this Current Report on Form 8-K. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

The information in this Current Report is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

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.