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Publicly traded sponsor of non-traded REITs announces public offering

NorthStar Realty Finance Corp (NorthStar), sponsor to three public, non-traded REITs, has announced a public offering of 50 million shares of common stock (NYSE: NRF) with the expectation of granting underwriters a 30 day option to purchase up to an additional 7.5 million shares. 

The book-running managers of the offering include UBS, J.P. Morgan, Citigroup, Deutsche Bank, and Barclays. 

NorthStar is the sponsor of one closed public, non-traded REIT, NorthStar Real Estate Income Trust, Inc., which rose over $1.1 billion in capital. They also have two public, non-traded REITs currently raising capital through the independent broker dealer channel. 

NorthStar Real Estate Income II, launched December of 2012, has raised $7.4 million and is focused on “commercial real estate debt, securities and select equity investments.” NorthStar Healthcare Income, Inc. has raised $64.9 million through November 11th, 2013, and as the name implies, intends to purchase a portfolio of healthcare related properties with a focus on senior housing. 

According to the announcement, NorthStar expects to use the proceeds of the offering to “fund the cash portion of the purchase price for the acquisition of an approximately $400 million portfolio of manufactured housing communities that it currently has under contract; and make other potential investments relating to its business, which may include:

  • an approximately $350 million debt and equity investment in a strategic joint venture with a New York tri-state area focused real estate owner and asset manager
  • the acquisition of limited partnership interests in real estate private equity funds
  • the acquisition of commercial real estate properties
  • the origination of commercial real estate loans

Any remaining net proceeds will be used for general corporate purposes, including the repurchase or repayment of our liabilities.”

To see the full press release, click here.