As of December 31, 2012, NorthStar had $7.4 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 loans and other loans, including preferred equity interests.
Our CRE securities business is focused on investing in and managing a wide range of CRE securities, including commercial mortgage back securities (CMBS), unsecured REIT debt and collateralized debt obligation (CDO) notes backed primarily by CRE securities and CRE debt.
Our net lease properties business is focused on acquiring real estate that is typically leased to corporate tenants and healthcare operators. Our core net lease business invests primarily in office, retail and industrial properties. We also own, manage and invest in healthcare properties focused on mid-acuity facilities (i.e., assisted living and skilled nursing facilities).
Our asset management and other activities include managing our CDO financing transactions on a fee basis; sponsoring and advising on a fee basis, our non-traded REITs and acting as a special servicer for our owned (and potentially third party owned) CMBS.
(1)Based on principal amount of real estate debt, real estate securities and the cost basis of net lease properties. (2)Includes $0.3 million principal amount primarily related to real estate owned (either directly or through a joint venture). (3)Based on consolidated total assets.