As of June 30, 2016, NorthStar had $19.7 billion in assets.1
NorthStar’s overarching objectives are to make commercial real estate (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 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 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 commercial real estate business explores various types of investments in CRE located throughout the United States and internationally, including healthcare, hotels, manufactured housing communities, 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.
Additionally, our commercial real estate debt platform focuses 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.
(1) Based on cost for real estate investments which includes net purchase price allocation related to net intangibles, deferred costs and other assets, if any, fair value for PE Investments and includes the deferred purchase price for PE Investment II, carrying value for our corporate investments, principal amount for our CRE debt and securities investments and amortized cost for N-Star CDO equity. Represents 100% of all real estate assets in consolidated joint ventures. (2) Includes $438 million of Sterling denominated real estate in the United Kingdom owned in connection with the acquisition of the Griffin-American Portfolio. Includes our corporate investments in RXR Realty LLC, Aerium Group and SteelWave, LLC (formerly known as Legacy Partners Commercial LLC). In May 2016, we entered into an agreement to sell our manufactured housing portfolio for $2.0 billion with $1.3 billion of related mortgage financing expected to be assumed as part of the transaction. We expect to receive $615 million of net proceeds, including a $50 million deposit made by the buyer. We expect the transaction to close in the first quarter 2017. We are in the process of redeeming our interests in our Industrial Portfolio for $169 million of net proceeds. We expect the transaction to close in the third quarter 2016; however, there is no assurance we will enter into a definitive agreement for the transaction on the contemplated terms, if at all. We entered into agreements to sell ten multifamily properties for $307 million with $210 million of mortgage financing expected to be assumed as part of the transaction. In June 2016, we sold four multifamily properties for $33 million of net proceeds and expect to sell the remaining six properties in the third quarter 2016 for $53 million of net proceeds. We continue to explore the sale of the remaining two properties. (3) Represents our proportionate interest in RXR Realty’s total assets under management, as of June 30, 2016, comprised of primarily Class-A real estate investments in the New York Tri-State area, less our corporate investment in RXR Realty. (4) Represents our proportionate interest in SteelWave’s total assets under management, as of December 31, 2015, less our corporate investment in SteelWave. (5) In August 2016, we entered into an agreement to sell a portfolio of PE Investments for a gross sales price of $318 million with $44 million of deferred purchase price expected to be assumed as part of the transaction. We expect to receive $247 million of net proceeds in the fourth quarter 2016. There is no assurance we will consummate the transaction on the contemplated terms, if at all. (6) Represents assets of deconsolidated N-Star CDOs and is based on the respective remittance report issued on the date nearest to June 30, 2016. This amount excludes $435 million of aggregate principal amount of N-Star CDO bonds and amortized cost of N-Star CDO equity of such deconsolidated N-Star CDOs included in CRE securities. (7) Includes N-Star CDO bonds with a principal amount of $140 million related to CRE securities CDOs that are eliminated in consolidation.