NorthStar Realty Finance Enters Into Definitive Agreement to Acquire Real Estate Portfolio

Mar 01, 2007, 00:00 ET from NorthStar Realty Finance

    NEW YORK, March 1 /PRNewswire-FirstCall/ -- NorthStar Realty Finance
 (NYSE:   NRF) today announced that a joint venture among affiliates of
 NorthStar, Goldman, Sachs & Co. and a well regarded publicly traded real
 estate finance company entered into a Purchase and Sale Agreement to
 acquire a diversified portfolio of multi-family properties from a leading
 developer and operator of long-term incentive tax credit properties. Each
 of the joint venture partners will equally share in the approximately $525
 million purchase price, inclusive of estimated fees and expenses, and the
 total transaction value, including assumed debt, will be approximately $1.9
 billion. The assets to be acquired consist of notes, general partnership
 interests and incentive fees relating to the underlying multi-family
 properties. The transaction, which is subject to a 120 day due diligence
 period and obtaining limited partner, lender and other consents, is
 expected to be completed in the third or fourth quarter of 2007.
     David T. Hamamoto, NorthStar's president and chief executive officer
 commented, "We are pleased to have partnered with two very well regarded
 investment and finance companies to have the opportunity to acquire a
 diverse portfolio of financial and real estate assets that we believe will
 generate an attractive and stable income stream for our stockholders over
 an anticipated 15-year hold period. This deal illustrates the opportunities
 available to investors who are able to work through complicated structures
 to generate compelling and off-market investments. We believe that this
 investment, if completed, will be at a substantial discount to the
 estimated replacement cost of the underlying assets and that our expected
 yield relative to our basis in the assets would be extremely difficult to
 replicate on a long-term basis in today's market."
     About NorthStar Realty Finance Corp.
     NorthStar Realty Finance Corp. is an internally managed REIT that
 originates and invests in commercial real estate debt, real estate
 securities and net lease properties. For more information about NorthStar
 Realty Finance Corp., please visit
     Safe Harbor Statement
     This press release contains "forward-looking statements" within the
 meaning of Section 27A of the Securities Act of 1933, as amended, and
 Section 21E of the Securities Exchange Act of 1934, as amended. Such
 statements include, among others, statements regarding the completion of
 the acquisition and related statements about income stream, hold period,
 discount and yield and are indicated by words or phrases such as
 "believes", "expects", "estimates", "anticipates", and similar expressions.
 Forward-looking statements are only not guarantees of performance. They are
 based on beliefs and assumptions of our management, which in turn are based
 on currently available information. These forward-looking statements
 involve known and unknown risks, uncertainties and other facts that could
 cause the actual future results of the Company to be materially different
 from such forward looking statements. Many of these factors are beyond our
 ability to control or predict. Such risks and uncertainties include
 completion of the proposed transaction, which is subject to numerous
 conditions including due diligence and required approvals. There can be no
 assurance that the proposed transaction will be completed or, if completed,
 will be on the terms described above. These forward-looking statements are
 made only as of the date hereof, and we disclaim any obligation to update
 or revise the information contained in any such forward-looking statements,
 whether as a result of new information, future events or otherwise. We are
 also subject to other risks, including those described under the heading
 "Risk Factors" in our annual report on Form 10-K for the year ended
 December 31, 2005, which are specifically incorporated by reference into
 this press release. Readers are cautioned not to place undue reliance on
 these forward looking statements.

SOURCE NorthStar Realty Finance