Welcome!

News Feed Item

NorthStar Realty Finance Announces Partnership with James F. Flaherty III, Former Chairman and CEO of HCP, Inc.

NEW YORK, Jan. 22, 2014 /PRNewswire/ -- NorthStar Realty Finance Corp. (NYSE: NRF) ("NorthStar") today announced that it has entered into a long-term partnership with Jay Flaherty to build a preeminent healthcare real estate business (the "Partnership").  As part of the Partnership, Mr. Flaherty will (i) oversee and seek to substantially grow NorthStar's on-balance sheet healthcare real estate portfolio, (ii) focus on raising institutional capital for funds to be managed by NorthStar Asset Management Group Inc. ("NorthStar Asset Management") and (iii) become CEO of NorthStar's healthcare real estate non-traded REIT, NorthStar Healthcare Income, Inc.

NorthStar's Chairman and Chief Executive Officer, David Hamamoto, commented, "We are very pleased and fortunate to have someone of Jay's caliber join the NorthStar team.  Jay's distinguished career, institutional credibility and proven ability to dramatically scale a healthcare real estate business while generating superior returns for shareholders are incredibly compelling for NorthStar and NorthStar Asset Management.  Given Jay's remarkable track record, I am confident that we can build a best in class healthcare real estate platform that will create the framework for extraordinary growth in NorthStar Asset Management and further diversify NorthStar's asset base with high quality investments."   

Prior to joining the NorthStar team, Mr. Flaherty was the Chairman and CEO of HCP, Inc. (NYSE: HCP) from 2003 to 2013.  During his time at HCP, Mr. Flaherty grew HCP's equity market capitalization tenfold, from approximately $2 billion in 2003 to over $20 billion in 2013, becoming the third largest REIT in the United States, the first healthcare REIT selected to the S&P 500 and the only REIT in the world selected to the S&P 500 "Dividend Aristocrats" Index.  During Mr. Flaherty's tenure at HCP, average shareholder returns exceeded 15% per year.  Prior to joining HCP, Mr. Flaherty served at Merrill Lynch & Co. for 19 years in a variety of investment banking, capital markets and private equity functions in New York, London and Los Angeles and was head of Merrill Lynch's Global Healthcare Group. Mr. Flaherty is a member of the Board of Trustees of the University of Notre Dame and was a member of the Board of Governors of the National Association of Real Estate Investment Trusts from 2004 to 2013.

Mr. Flaherty commented, "I am thrilled to be part of the NorthStar team. NorthStar is a best in class organization and I am excited to partner with NorthStar to build a preeminent healthcare real estate business.  We are very well positioned to create value by identifying opportunities and utilizing NorthStar's diversified capital sources, including direct balance sheet investments, capital available through NorthStar's non-traded REIT platform and dedicated private equity capital we expect to raise at NorthStar Asset Management." 

The Partnership with Mr. Flaherty will be entitled to incentive fees ranging from 20-25% above certain hurdles in connection with new and existing healthcare real estate investments on NorthStar's balance sheet ("Healthcare Balance Sheet Promotes") and new investments in future healthcare real estate funds raised by the Partnership ("Healthcare Fund Promotes").  The Partnership will also be entitled to the incentive fees earned by NorthStar from managing NorthStar's healthcare non-traded REIT and any future healthcare non-traded REITs sponsored by NorthStar or NorthStar Asset Management ("Healthcare NTR Promotes").  Mr. Flaherty will be entitled to (i) one-third of any Healthcare Balance Sheet Promotes and Healthcare NTR Promotes and (ii) one-half of any Healthcare Fund Promotes.

NorthStar expects that its interest in the Partnership will be transferred to NorthStar Asset Management as part of the previously announced spin-off of NorthStar's asset management business.  Accordingly, NorthStar Asset Management would be entitled to (i) two-thirds of any Healthcare Balance Sheet Promotes and Healthcare NTR Promotes, (ii) one-half of any Healthcare Fund Promotes, and (iii) 100% of any asset management fees earned by the Partnership or any healthcare real estate vehicle managed by NorthStar Asset Management. 

About NorthStar Realty Finance Corp.

NorthStar Realty Finance Corp. ("NorthStar") is a diversified commercial real estate investment and asset management company that is organized as a REIT. NorthStar recently announced a plan to spin-off its asset management business into a separate public company.  For more information about NorthStar, please visit www.nrfc.com.  

Forward Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "will," "expect," "proposed," "intend," "continue" or other similar words or expressions.  Forward-looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Such statements include, but are not limited to, NorthStar's ability to realize the benefits of the Partnership with Mr. Flaherty, including his ability to substantially grow NorthStar's on-balance sheet healthcare real estate portfolio and raise institutional capital for funds to be managed by NorthStar Asset Management;  the ability to replicate Mr. Flaherty's track record; the total return that NorthStar, NorthStar Asset Management and NorthStar Healthcare Income are able to generate to their respective stockholders; NorthStar's ability to diversify its asset base and build a best in class healthcare real estate platform; NorthStar's and the Partnership's ability to source and complete future healthcare real estate investments, including the ability to earn incentive fees from any such investments; NorthStar's ability to complete the spin-off of its asset management business, including the transfer of its interest in the Partnership to NorthStar Asset Management; the scalability of NorthStar's healthcare real estate business; the timing of, and the Partnership's ability to complete, any capital raising, including raising any private equity capital; the timing of, and the ability to complete, any formation of future healthcare non-traded REITs sponsored by either NorthStar or NorthStar Asset Management; the growth prospects of NorthStar's and NorthStar Asset Management's respective businesses, including NorthStar's healthcare real estate business; NorthStar's deal flow; and NorthStar's future cash available for distribution.  Factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 and its other filings with the Securities and Exchange Commission.

Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

SOURCE NorthStar Realty Finance Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...