{"id":1004145516,"date":"2016-06-07T03:40:39","date_gmt":"2016-06-07T11:40:39","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004145516"},"modified":"2020-04-15T00:05:12","modified_gmt":"2020-04-15T08:05:12","slug":"northstar-x-2-colony-in-three-way-merger","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/","title":{"rendered":"NorthStar (x 2), Colony in Three-Way Merger"},"content":{"rendered":"

By Scott Baltic, Contributing Editor<\/em><\/p>\n

\"Richard<\/a>

Richard Saltzman, CEO of Colony Northstar<\/p><\/div>\n

New York and Los Angeles\u2014<\/strong>Goodbye, NorthStar and Colony; hello Colony Northstar. NorthStar Asset Management Group Inc.<\/a> (NSAM), Colony Capital Inc.<\/a> and NorthStar Realty Finance Corp.<\/a> (NRF) have agreed to merge into a \u201cworld-class, internally-managed, diversified real estate and investment management<\/a> platform\u201d to be named Colony NorthStar Inc.<\/p>\n

The resulting equity REIT will have $58 billion worth of assets under management across different property types and with \u201cconcentration in scaled verticals across geographies, property types and capital stack positions, consisting primarily of owned real estate,\u201d according to the announcement.<\/p>\n

Once the merger has been completed, putatively in the first quarter of next year, Thomas Barrack Jr. (currently executive chairman of Colony) will be executive chairman of Colony NorthStar, David Hamamoto (currently executive chairman of NSAM and chairman of NRF) will be executive vice chairman, and Richard Saltzman (currently CEO and president of Colony) will be CEO.<\/p>\n

In addition, Darren Tangen will be the combined company\u2019s CFO and Mark Hedstrom its COO. Al Tylis, NSAM\u2019s CEO and a member of the NSAM and NRF boards, has agreed to assist in the transition following the merger. Dan Gilbert, NSAM\u2019s and NRF\u2019s chief investment officer and COO, will continue to oversee Colony NorthStar\u2019s retail platform.<\/p>\n

Post closing, Colony NorthStar anticipates realizing about $115 million in total annual cost savings, consisting of about $80 million of cash savings and about $35 million of stock-based compensation savings.<\/p>\n

In an effort toward deleveraging and improved liquidity, asset monetization and sale initiatives by NRF that will total about $1.5 billion in projected net proceeds are expected to bring Colony NorthStar\u2019s total debt-to-capitalization ratio under 50 percent.<\/p>\n

Further, Colony NorthStar is expected to be in the top quartile as ranked by equity market capitalization, according to the MSCI U.S. REIT Index classification. The company is expected to enjoy an expanded ability to deploy third-party fee-bearing capital to accelerate growth and provide enhanced returns to shareholders from consistent, longer-duration fee-related income.<\/p>\n

\u201cWe are confident that Colony NorthStar with its lower leverage, larger balance sheet and improved liquidity profile is poised for meaningful multiple expansion and substantially enhanced long-term returns for shareholders,\u201d Hamamoto said in a prepared statement.<\/p>\n

\u201cThe combined company will have both the capability and balance sheet capacity to deploy capital to establish and fortify foundational equity real estate positions through all points in the cycle, across geographies, asset types and capital structures. We also will realize substantial efficiencies and synergies by bringing our organizations together and offering a well curated menu of durable real estate business lines with broad-based capital access,\u201d Barrack added.<\/p>\n

Representatives of NSAM and Colony declined to reply to Commercial Property Executive<\/a><\/em>\u2019s request for additional information.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The resulting equity REIT will have $58 billion worth of assets under management across different property types.<\/p>\n","protected":false},"author":882,"featured_media":1004506842,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21781,21743,21808,21783,23891,1600,21742,1609],"tags":[],"class_list":["post-1004145516","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-real-estate","category-deals","category-featured","category-investment","category-national","category-new-york","category-latest","category-san-francisco"],"acf":[],"yoast_head":"\nNorthStar (x 2), Colony in Three-Way Merger - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NorthStar (x 2), Colony in Three-Way Merger\" \/>\n<meta property=\"og:description\" content=\"The resulting equity REIT will have $58 billion worth of assets under management across different property types.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-06-07T11:40:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-15T08:05:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/03\/Richard-Saltzman-CEO-of-Colony-Northstar-e1465295721866.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"377\" \/>\n\t<meta property=\"og:image:height\" content=\"345\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/\",\"name\":\"NorthStar (x 2), Colony in Three-Way Merger - 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He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"NorthStar (x 2), Colony in Three-Way Merger - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/","og_locale":"en_US","og_type":"article","og_title":"NorthStar (x 2), Colony in Three-Way Merger","og_description":"The resulting equity REIT will have $58 billion worth of assets under management across different property types.","og_url":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2016-06-07T11:40:39+00:00","article_modified_time":"2020-04-15T08:05:12+00:00","og_image":[{"width":377,"height":345,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/03\/Richard-Saltzman-CEO-of-Colony-Northstar-e1465295721866.jpg","type":"image\/jpeg"}],"author":"Scott Baltic","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/","url":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/","name":"NorthStar (x 2), Colony in Three-Way Merger - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/03\/Richard-Saltzman-CEO-of-Colony-Northstar-e1465295721866.jpg","datePublished":"2016-06-07T11:40:39+00:00","dateModified":"2020-04-15T08:05:12+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/03\/Richard-Saltzman-CEO-of-Colony-Northstar-e1465295721866.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/03\/Richard-Saltzman-CEO-of-Colony-Northstar-e1465295721866.jpg","width":377,"height":345},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/northstar-x-2-colony-in-three-way-merger\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"NorthStar (x 2), Colony in Three-Way Merger"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. 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