Northstar Realty Finance Corp
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Northstar Realty Finance Corp is an internally managed real estate investment trust (REIT). Their New York Stock Exchange ticker symbol is NRF and they concentrate or originating and acquiring real estate debt, real estate securities and net lease properties.
Northstar Realty Finance Real Estate Debt
Northstar Realty Finance uses Collateralized Debt Obligations (CDOs) to raise money by securitizing their portfolio of debt. On their net-lease properties, they use nonrecourse first mortgages.
Northstar uses Rated B Notes, Net Lease Mezzanine debt, Credit Tenant Lease securities, Collateralized Mortgage-Backed securities (CMBs), fixed income securities issued by other REITs, credit rated tenant loans, and CDOs backed by real estate securities, bank loans to REITs and real estate operating companies. They look for investment grade commercial real estate.
Northstar Realty's net lease properties are in industrial, retail and medical markets, with investment-grade tenants, for 15 years or more terms. Net lease means that tenant will pay all expenses, such as utilities and repairs.
They also work with private equity groups to convert a target company's real estate holdings into capital available to finance the transaction. This may include doing a sale/leaseback deal with NRF. They often work with real estate owners to structure real estate aquisitions to delay paying taxes.
Next: Origen Financial Inc -- manufactured home real estate financing
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