NorthStar Realty Finance Corp. (NYSE: NRF) has registered its wholly owned subsidiary, NRF Capital Markets LLC, with the Securities and Exchange Commission (SEC).
NRF Capital Markets will be responsible for selling a new non-traded commercial finance REIT, the NorthStar Real Estate Income Trust. According to Andrew Richardson, chief financial officer of NorthStar Realty Finance, the new REIT would have no assets and focus on "lower-leverage, lower-yielding real estate debt and securities."
NorthStar Realty Finance made the announcement on April 28, which included the news that NRF Capital Markets also has been approved as a member of Financial Industry Regulatory Authority, Inc. FINRA.
NRF Capital Markets marks NorthStar Realty Finance's first entry into the non-traded REIT space. However Richardson noted that he is optimistic that success with NRF will open more doors for NorthStar.
"We hope that this initial offering in the non-traded REIT space would lead to more opportunities to sponsor and advise REITs in the non-offered space," Richardson said.