As of March 31, 2014, NorthStar had $12.0 billion in assets under management.
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 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.
(1) Including assets of deconsolidated collateralized debt obligations, or CDOs, and certain investments that NorthStar acquired or entered into an agreement to acquire subsequent to the first quarter 2014. Based on cost for real estate investments which includes net purchase price allocation related to net intangibles and other assets and liabilities, fair value for our investments in joint ventures owning limited partnership interests in real estate private equity funds, or PE investments, and includes the deferred purchase price for PE Investment II, principal amount for our CRE debt and securities investments and fair value for N-Star CDO equity. (2) Includes the $1.1 billion healthcare real estate portfolio acquired in May 2014. Includes the $996 million hotel portfolio NorthStar entered into an agreement to acquire subsequent to the first quarter 2014, inclusive of estimated closing costs. Includes $406 million industrial portfolio for which we entered into an agreement to invest subsequent to the first quarter 2014. (3) Based on consolidated total assets. (4) Based on the respective remittance report issued on date nearest to March 31, 2014. This amount excludes $667 million of aggregate N-Star CDO equity and N-Star CDO bonds included in Real Estate Securities. (5) Includes aggregate $102 million principal amount of N-Star CDO bonds related to Real Estate Securities CDOs that are eliminated in consolidation.