Also, please note that annual K1s are expected to be mailed out on or before the week of April 6 th.

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1 February 27, 2015 Dear Investor: We are pleased to provide the Semiannual Report of DeBartolo Opportunity Fund II, LP ( DOFII or the Fund ) covering the period of time from July 1, 2014 December 31, Executive Summary We continue to increase the value in each of our investments through our asset management expertise, and our focus remains on finding profitable disposition opportunities for investors. Now that the Aloft Atlanta Hotel transition is complete, we are actively exploring selling the property at a peak level. We were pleased to make our first distribution to investors in July. The distribution is characterized as a return of preferred interest and was the result of accumulated excess cash flow, and distributions received from various properties. To date, we have invested $20.3 million in eight assets five multifamily properties totaling 969 units and three hotel assets. (Any remaining capital will be used for operating costs and debt compliance covenants.) Hampton Inn & Suites A 122 room hotel in Tallahassee, FL Aloft Downtown Atlanta (Atlanta, GA) A 254 room hotel in Atlanta, GA Landmark at Atrium Commons A 256 unit apartment community in San Antonio, TX Landmark at Stratton Park A 127 unit apartment community in San Antonio, TX Landmark at Amelia Ridge A 188 unit apartment community in Round Rock, TX Landmark at Auburn Manor A 200 unit apartment community in Round Rock, TX Landmark at Brentwood Trace A 198 unit apartment community in Garland, TX Aqua Waikiki Pearl A 132 room hotel in Honolulu, HI Also, please note that annual K1s are expected to be mailed out on or before the week of April 6 th. Investor Communications A secured investor login section is accessible on the bottom left hand corner of our Home page ( labeled INVESTORS. We continue to post press releases on Fund acquisitions, dispositions, Semiannual Newsletters, the annual Audit Report and any other general information about the Fund s activities. The password for DeBartolo Opportunity Fund, II LP is Investor75 (case sensitive). All newsletters will only be ed to investors and broker dealers as well as posted on the secured investor section of our Website. If we do not already have your address or you would still like to receive the newsletter by mail, please contact us at dof2@debartoloholdings.com or call

2 Semiannual Conference Call The Fund s semiannual investor call with Ed Kobel, President of the Fund s General Partner, will be March 17 at 3 p.m. EST. The following are teleconference dial in numbers: United States: (800) International: (612) Confirmation Number: A digitized recording will be available after the call. Below are access numbers for the replay, which will be accessible March 17 after 5 p.m. EST until June 17. United States: (800) International: (320) Confirmation Number: Asset Management The following is a semiannual update related to the asset management of the Fund s investments. Aqua Waikiki Pearl Honolulu, HI Closing date: July Acquisition price: $18,000, DOFII equity interest: 37.5% Revenues: $3,441,833 (3&4Q) NOI: $1,871,577 (1&2Q) Average Daily Rate (ADR): $134 Revenue Per Available Room (RevPAR): $128 Occupancy: 95.5% Property Management Update: The property had a good end of year in comparison to the competitive set. Despite not making budget, we finished the year with positive cash flow of $692K, and $413K of excess cash was distributed to Joint Venture Partners. DeBartolo Opportunity Fund II received a distribution of $154,875 for its portion of the investment. The beginning of 2015 has been disappointing as all of Waikiki is struggling compared to the previous year; however, March is showing promise and is currently on pace to exceed last year s numbers. If we maintain this momentum, we are hopeful to achieve budget but also are prepared to change accordingly if the pace is affected. o We are exploring the extension of the ground lease of this hotel and selling the asset in 2015.

3 Landmark at Atrium Commons San Antonio, TX (Formerly known as Huebner Country) Acquisition price: $13,250,000 NOI: $481,741 (3&4Q) Occupancy: 92.7% Average Revenue Per Unit: $ Property Management: Occupancy decreased slightly by 2% in December down to 90%. Due to lagging occupancy during the rehab, Income and NOI are both below budget YTD by $174k and $215k, respectively. Now that the rehab is complete, we can begin focusing on marketing the property to increase occupancy. The 4th quarter of the year has already made up some ground and we should see the positive direction continue into The rehab is 100% complete. Landmark at Stratton Park San Antonio, TX (Formerly known as Hampton North) Acquisition price: $7,700,000 NOI: $258,131 (3&4Q) Occupancy: 91.0% Average Revenue Per Unit: $770.60/month Property Management: Occupancy remained stable in December at 90%. Due to lagging occupancy during the rehab, Income and NOI are both below budget YTD by $53k and $137k, respectively. The rehab is 100% complete. Now that the rehab is complete we should begin to see occupancy and NOI increase. Landmark at Amelia Ridge Round Rock, TX (Formerly known as The Gables of Round Rock) Acquisition price: $12,000,000 NOI: $535,549 (3&4Q) Occupancy: 96.0% Average Revenue Per Unit: $839/month Property Management: Occupancy remained stable during the month of December at a healthy 96%. Income also held stable, but we saw a significant increase in NOI due to a favorable real estate tax adjustment. Compared to our 2014 budget, we ended the year very strong. Our income was 8.9% above budget due to strong occupancy, and NOI was 16.6% above budget due to savings in marketing and utility expenses. The rehab is complete and all invoices have been paid. We saw a savings to budget of 3.4%. In 2015, we foresee these positive trends continuing with high occupancy and above average NOI.

4 Landmark at Auburn Manor Round Rock, TX (Formerly known as Vista Ridge) Acquisition price: $11,100,000 NOI: $554,935 (3&4Q) Occupancy: 95.3% Average Revenue Per Unit: $766.54/month Property Management: Occupancy decreased in December by 5% down to 92%. December is the hardest month for occupancy, as new leases are hard to capture during the holiday period. Although December was not the best month, we still finished 2014 very strong. Our Income saw a 10.6% increase over budget and our NOI was 22.7% over budget. These phenomenal results were due to higher occupancy and rental rates to budget, as well as savings in property maintenance and real estate tax expenses. The rehab is complete and all invoices have been paid. We saw a savings to budget of 4.7%. In 2015, we foresee these positive trends continuing with high occupancy and above average NOI. Landmark at Brentwood Trace Garland, TX (Formerly known as Meridian Pointe) Closing date: June 28, 2013 Acquisition price: $11,730,000v NOI: $638,736 (3&4Q) Occupancy: 94.5% Average Revenue Per Unit: $809.56/month Property Management: Occupancy remained stable in December at 94%. NOI before fixed costs were right on budget for the 2014 year. Unfortunately, the property saw unfavorable increases in real estate taxes and insurance premiums that lead NOI to be (9.8%) below budget. The rehab is 100% complete. This year looks to be promising for the property. We plan to market and advertise this property to increase occupancy above average levels and work to keep controllable costs to a minimum. ALOFT Atlanta Downtown (Formerly Hotel ATL) Atlanta, GA Closing date: July 19, 2012 Acquisition Price: $19. 5 million DOFII equity interest: 100% Revenues: $3,630,254 (3&4Q) NOI: $1,119,012 (3&4Q) Average Daily Rate (ADR): $135.28

5 Revenue Per Available Room (RevPAR): $70.74 Occupancy 51.5% Property Management: The property exceeded budgeted ADR for December as it had for Occupancy, however, did fall short of budget, leading to a shortage in total revenue for the month. NOI was also under budget for the month and for the year. There will be a renewed focus on improving cost controls in 2015 and additional training of the staff in understanding budgets and the purchase approval process. o As mentioned earlier, we are exploring the sale of this property now that the transition is complete. We have multiple offers in hand and we are in the process of vetting buyers. Hampton Inn & Suites Tallahassee, FL Closing date: July 31, 2012 Acquisition Price: $12,350, DOFII equity interest: 100% Revenues: $1,927,499 (3&4Q) NOI: $673,907 Average Daily Rate (ADR): $ Revenue Per Available Room (RevPAR): $87.64 Occupancy: 70.8% Property Management: The property fell just short of budgeted occupancy rates, RevPAR and gross revenues towards the end of 2014, despite increased activity in the area. We continue to make gains from the demands of Florida State University, which hosted five homes games in the fourth quarter, including two ESPN College GameDays. Our proximity to the state capitol also added three legislative committee weeks. We attribute the slight decline in Q4 to the minirenovation, which was completed in October. The improvements all look great, and we expect to see a positive impact on guest service scores as well as an increase in ADR in Over 165 leads came into the property in Q4 from various Websites and hotel planners as well as the City of Tallahassee. We re negotiated 31 local negotiated rates and responded to 17 Hilton RFPs. The demand for leisure and corporate business has increased by 5% YTD, and we were able to capture an additional $5 per new local negotiated rate. There is new construction bringing in several new national chain restaurants into the market, which we anticipate will add additional room nights moving forward. We are in the process of placing bids and are looking forward to a successful o We are awaiting valuations and will list the property for sale by second quarter In closing, economists at Goldman Sachs ( GS ) believe that GDP will grow by a strong 3% in 2015 and possibly maintain this growth through GS contributes this positive U.S. economic outlook to increased private domestic demand in homebuilding, consumption, and investment. These increases are likely the result of lower unemployment, improved consumer spending, and improved consumer

6 confidence. According to the Bureau of Labor and Statistics, the unemployment rate in January 2015 was only 5.7%. Marcus and Millichap also report that oil prices have declined by 40% since their last high point in summer 2013 and that consumer confidence also reached an eight year high point (both metrics as of last December). This drop in fuel prices and lower unemployment rate may lead consumers who depend on travel to and from work to deploy these savings into more consumption, further driving a positive economy for DeBartolo continues to witness positive trends in the U.S. economy boding well for the commercial real estate industry. With lower fuel prices and changing consumer spending habits, multifamily apartment units continue to be in high demand. We believe that with news such as REITs possibly out performing the stock market in 2014 that the market continues to be flush with capital looking for the right real estate investments. Under these positive economic circumstances both affecting the underlying real estate and strong investor sentiment, DeBartolo continues to look for the best possible disposition scenarios for each of its fund assets to achieve the best possible returns for its stakeholders. We thank you for your support and investment, and look forward to talking to you during our investor call on March 17 th. Best regards, Edward M. Kobel President