In a press release dated July 8, 2010, NorthStar Realty Finance announced that it acquired certain management rights and interests in CapitalSource’s $1.1 billion CDO.
NorthStar Realty Finance Corp. (“NorthStar”), a finance REIT that originates and invests in commercial real estate debt, real estate securities and net lease properties, acquired the management and special servicing rights, and the associated fees, relating to CapitalSource’s approximately $1.1 billion collateralized debt obligation (the “CDO”). The CDO was comprised primarily of first mortgage loans on commercial real estate. In addition, NorthStar acquired the CDO’s Class J Notes and Class K Notes, with combined current balance of approximately a $110 million, and the CDO’s equity.
NorthStar paid a total consideration of approximately $7 million and expects to consolidate the assets and liabilities of the CDO on the acquisition date at their respective fair market values.
To view the press release, please click here.