As of December 31, 2013, NorthStar had $10.6 billion in assets under management.*
NorthStar’s overarching objectives are to make commercial real estate, or CRE, investments that produce attractive risk-adjusted returns, generate stable cash flows for distribution to our stockholders and ultimately build long-term franchise value. We have created a unique investing and asset management platform that positions us well to achieve these goals.
Our business lines are complementary to one another due to their overlapping sources of investment opportunities, common reliance on commercial real estate fundamentals and application of similar asset management skills to maximize value and to protect capital. We gain uncommon insights into managing risk and our credit underwriting and capital markets expertise helps us optimize risk-return for our stockholders. The overlap between business lines also increases the access to a sustainable pipeline of investment opportunities.
Our primary business lines are as follows:
Our CRE debt business is focused on originating, structuring, acquiring and managing senior and subordinate debt investments secured primarily by commercial, multifamily and healthcare properties and includes first mortgage loans, subordinate mortgage interests, mezzanine loans, credit tenant and other loans and preferred equity interests, including any potential upside from such loans.
Our real estate business explores various types of investments in CRE located throughout the United States that includes manufactured housing communities, healthcare, net lease, multifamily and other real estate assets. In addition, our real estate business includes indirect investments in real estate through joint ventures owning limited partnership interests in private equity funds managed by top institutional-quality sponsors.
Our asset management business is primarily focused on CRE related activities such as sponsoring and advising on a fee basis our sponsored companies.
Historically, we also invested in CRE securities, most of which were acquired before 2011, which we refer to as our legacy CRE securities, and include a wide range of CRE related securities, including commercial mortgage backed securities, or CMBS, unsecured REIT debt and CDO notes backed primarily by CRE securities and CRE debt.
*Including assets of deconsolidated CDOs and the initial and deferred amount of PE Investment II which completed its initial closing in July 2013. (1) Based on principal amount of CRE debt and securities investments, fair value for our private equity fund investments and N-Star CDO equity investments and the cost basis of our real estate investments. Any real estate owned (either directly or through a joint venture) as a result of taking title to a property through foreclosure, deed in lieu or otherwise (“taking title to a property”) reflects the principal amount of the loan at time of foreclosure. (2) Based on consolidated total assets. (3) Amount excludes $640 million of N-Star CDO bonds and N-Star CDO equity reported in Real Estate Securities.