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NORTHSTAR REALTY FINANCE CORP. FILES (8-K) Disclosing Completion of Acquisition or Disposition of Assets

June 10, 2014

Item 2.01 Completion of Acquisition or Disposition of Assets. On June 9, 2014, NorthStar Realty Finance Corp. (the "Company"), through a subsidiary, completed its previously announced acquisition of a hotel portfolio comprised of 47 upscale extended stay hotels and premium branded select service hotels with approximately 6,100 rooms (the "Innkeepers Portfolio") for an aggregate purchase price of approximately $1.1 billion, including certain closing costs, pre-funded capital expenditures and other costs. The Innkeepers Portfolio is a geographically diverse, bi-coastal portfolio located primarily in top metropolitan markets, with the largest concentration of net operating income from hotels in California. The Company structured the acquisition as a joint venture with an affiliate of Chatham Lodging L.P., which was the prior minority owner of the portfolio. The Company contributed approximately $193 million for an approximate 90% interest in the joint venture and will predominantly control the joint venture. The joint venture purchased the portfolio from certain entities affiliated with Cerberus Real Estate Capital Management, Inc., a third party. The Company's joint venture obtained $840 million of 5-year, non-recourse financing (including optional extensions), subject to customary exceptions, in connection with the acquisition. The financing has an initial interest rate of 3.54% and is secured by first lien mortgages on the hotels and equity interests in the Innkeepers Portfolio. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 2.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.


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Source: Edgar Glimpses

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