NEW YORK, Nov. 3, 2011 /PRNewswire/ -- iStar Financial Inc. (NYSE: SFI) announced today that it has extended its lease on five hotel net lease assets through December 31, 2025. The lease extension covers hotels in Seattle, San Diego/Mission Valley, Sonoma, Salt Lake City and Durango, CO and, as part of this lease extension, the Company has released Red Lion Hotels Corporation from a master lease that covered 15 properties in total, including the above hotels. The remaining 10 properties, previously leased to and operated by Red Lion Hotels Corporation, were sold to Red Lion for $37 million.
The retained assets represent the largest hotels in the original portfolio, with strong rent coverage and excellent market positioning. The combined transaction allows iStar to retain the larger, core hotels in the portfolio with an extended term of nearly 15 years while monetizing non-core hotels and generating capital that can be redeployed into other investments.
* * *
iStar Financial Inc. (NYSE: SFI) is a fully-integrated finance and investment company focused on the commercial real estate industry. The Company provides custom-tailored investment capital to high-end private and corporate owners of real estate and invests directly across a range of real estate sectors. The Company, which is taxed as a real estate investment trust ("REIT"), has invested more than $35 billion over the past two decades. Additional information on iStar Financial is available on the Company's website at www.istarfinancial.com.
SOURCE iStar Financial Inc.