As of December 31, 2014, NorthStar had $18.5 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 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) As of December 31, 2014, adjusted for acquisitions and commitments to purchase real estate through February 24, 2015. (2) 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 our investments (directly or indirectly 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 amortized cost for N-Star CDO equity. Represents 100% of all real estate assets in consolidated joint ventures. (3) Includes $498 million of Sterling denominated real estate in the United Kingdom owned in connection with the acquisition of the Griffin-American Portfolio. Includes $1.9 billion of commitments to purchase European assets through February 24, 2015. Represents our investments in RXR Realty LLC, Aerium Group and Legacy Partners Commercial LLC. (4) Includes assets of deconsolidated CRE debt CDOs, referred to as N-Star CDOs. Based on the remittance report issued on date nearest to December 31, 2014. This amount excludes $599 million of aggregate N-Star CDO equity and N-Star CDO bonds included in CRE securities. (5) Includes N-Star CDO bonds with a principal amount of $108 million related to CRE securities CDOs that are eliminated in consolidation.