NEW YORK, Dec. 23, 2013 /PRNewswire/ -- NorthStar Realty Finance Corp. (NYSE: NRF) ("NorthStar") today announced the closing of a strategic $340 million investment (the "Investment") in RXR Realty ("RXR"), a leading real estate operating and investment management company focused on the New York City Tri-State area. The Investment includes a combination of corporate debt, preferred equity and common stock in RXR which provides NorthStar with an approximately 30% ownership interest in RXR.
RXR was formed in 2007 by the former management team of Reckson Associates Realty Corp. ("Reckson") after it sold Reckson to SL Green Realty in January 2007 for $6.5 billion, generating a 715% total return to Reckson's shareholders since its IPO in 1995. Since its formation RXR has raised over $3 billion of institutional capital and accumulated interests in $6.5 billion of assets comprised of 108 operating properties and approximately 20 million square feet. RXR began reinvesting in the Manhattan market in 2009 and has been one of the most prolific investors assembling a portfolio of trophy assets that include 75 Rockefeller Plaza, 237 Park Avenue 340 Madison Avenue, 450 Lexington Avenue, 620 Avenue of the Americas, The Starrett Lehigh Building and 1330 Avenue of the Americas.
NorthStar's Chairman and Chief Executive Officer, David Hamamoto, commented, "We are very pleased to partner with such a high caliber, successful and well-known organization like RXR. Given RXR management's track record in both the public and private markets, its high quality real estate portfolio and its growing asset management business, they are a perfect fit for NorthStar, both in terms of further diversifying NorthStar's asset base with trophy properties in New York City, and growing NorthStar's asset management business."
Mr. Hamamoto continued, "In connection with the recently announced planned spin-off of NorthStar Asset Management, we will be evaluating alternatives for including NorthStar's portion of RXR's asset management business as part of the assets that NorthStar Asset Management will receive in the spin-off. This transaction with RXR is the first of many opportunities that we hope to execute on as we begin to scale our asset management business."