NorthStar Realty Finance Corp.closed on the acquisition of a manufactured housing portfolio comprised of 71 communities containing approximately 17,000 pad rental sites located throughout five states (primarily inFloridaandSalt Lake City, Utah) for an aggregate purchase price of $865 million, inclusive of all costs, escrows and reserves. NorthStar financed this transaction with a$640 millionnon-recourse, 10-year mortgage with a fixed interest rate of 4.02 percent. NorthStar expects to earn an initial current yield of approximately 14 percent on its equity investment.
David Hamamoto, chairman and chief executive officer, commented "We are extremely pleased with the acquisition of a second large portfolio in a sector of commercial real estate which has consistently demonstrated stable cash flows, steady rental growth, very low turn-over rates and minimal capital expenditures. Given the portfolio's strong cash flow characteristics and our long-term, low-cost financing, we expect to generate attractive risk adjusted returns and substantial gross dollar profits on this portfolio."
In other company news, last week the REIT priced an underwritten public offering of