The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

NorthStar Realty Finance Announces Acquisition of $1.1 Billion CDO

Thursday, July 08, 2010

NorthStar Realty Finance Announces Acquisition of $1.1 Billion CDO17:00 EDT Thursday, July 08, 2010NEW YORK, July 8 /PRNewswire-FirstCall/ -- 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. About CapitalSource 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.For further information: Investor Relations, Joe Calabrese for CapitalSource Inc., +1-212-827-3772