|NorthStar Realty Finance Announces Acquisition of $1.1 Billion CDO|
NEW YORK, July 8, 2010 /PRNewswire via COMTEX/ --
NorthStar Realty Finance Corp. (NYSE: NRF) announced today that an affiliate of CapitalSource Inc. (NYSE: CSE) (i) delegated to NorthStar collateral management and special servicing rights, and the associated fees, relating to CapitalSource's approximately $1.1 billion collateralized debt obligation consisting primarily of first mortgage loans on commercial real estate (the "CDO") and (ii) sold to NorthStar the CDO's Class J notes (approximately $50 million current balance), the CDO's Class K notes (approximately $60 million current balance) and the CDO's equity. Total consideration paid in the transaction was $7 million.
As of July 8, 2010, the CDO had approximately $101 million available for investment. NorthStar expects to consolidate the assets and liabilities of the CDO at their respective fair market values as of the acquisition date.
"We are very pleased to enter into this transaction with CapitalSouce," said David Hamamoto, NorthStar's Chairman and Chief Executive Officer. "We also view this transaction as further validation of NorthStar's expertise in the management of commercial real estate assets," added Mr. Hamamoto.
About NorthStar Realty Finance Corp.
NorthStar Realty Finance Corp. is a finance REIT that primarily originates and invests in commercial real estate debt, real estate securities and net lease properties. For more information about NorthStar Realty Finance Corp., please visit www.nrfc.com.
CapitalSource Inc. (NYSE: CSE) is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. As of March 31, 2010, CapitalSource had total commercial assets of $8.7 billion and $4.6 billion in deposits. The Company is headquartered in Chevy Chase, MD. Visit www.capitalsource.com for more information.
SOURCE NorthStar Realty Finance Corp.