NorthStar Realty Finance, a diversified commercial real estate investment and asset management company that is organized as a REIT, has closed a strategic $340 million investment in New York's RXR Realty. According to a NorthStar press release, the investment includes a combination of corporate debt, preferred equity and common stock in RXR which provides NorthStar with an approximately 30% ownership interest in RXR. NorthStar Asset Management will be entitled to 50% of the asset management fees from any capital raised through its distribution network and will be entitled to additional asset management fees through its proportionate ownership interest in RXR.
NorthStar's Chairman and Chief Executive Officer, David Hamamoto, commented, "We are very pleased to partner with such a high caliber, successful and well-known organization like RXR. Given RXR management's track record in both the public and private markets, its high quality real estate portfolio and its growing asset management business, they are a perfect fit for NorthStar, both in terms of further diversifying NorthStar's asset base with trophy properties in New York City, and growing NorthStar's asset management business."
RXR's Chairman and Chief Executive Officer, Scott Rechler, commented, "We are extremely excited to partner with the dynamic and high quality team at NorthStar. We believe that NorthStar's strong balance sheet, deal flow and capital raising capabilities will enable us to more effectively execute our investment strategy in the New York Metropolitan area. NorthStar is the ideal strategic partner for RXR to continue executing on our expansion plans and, in turn, we believe our growth will substantially boost NorthStar's rapidly growing asset management business."
RXR was formed in 2007 by the former management team of Reckson Associates Realty Corp. after it sold Reckson to SL Green Realty in January 2007 for $6.5 billion, according to a CoStar report.
For more news and information visit Blumberg Capital Partners.
No comments:
Post a Comment