UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):August 11, 2011
NorthStar Real Estate Income Trust, Inc.
(Exact Name of Registrant as Specified in Charter)
Maryland | 333-157688 | 26-4141646 | ||
(State or Other Jurisdiction | (Commission File Number) | (IRS Employer | ||
of Incorporation) | Identification No.) |
399 Park Avenue, 18th Floor, New York, New York 10022
(Address of Principal Executive Offices) (Zip Code)
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code: (212) 547-2600
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions (see
General Instruction A.2. below):
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01. Regulation FD Disclosure.
On August 11, 2011, NorthStar Real Estate Income Trust, Inc. (the Company) purchased $4,000,000
of the Class C CMBS certificates of the LB-UBS Commercial Mortgage Trust 2006-C6 (the LBUBS C
Bond) for a purchase price of $2,720,000. The LBUBS C Bond is rated as BB+ by Standard & Poors
and Ba2 by Moodys Investors Services and was originally rated as AA by Standard & Poors and Aa2
by Moodys Investor Services, Inc.
As of July 15, 2011, the LBUBS C Bond was secured by a diverse pool, by underlying property type
and location, of 175 commercial real estate first mortgage loans located throughout the United
States. The main property types underlying the loans securing the LBUBS C Bond consist of office
(approximately 48%), retail (approximately 34%) and multifamily (approximately 11%) with no other
property type representing greater than 3% of the pool. The top ten loans make up approximately
55% of the collateral pool and consist of high quality real estate owned by institutional borrowers
located in major markets including New York, Boston, San Diego, Dallas, and Washington D.C. For
example, the top two loans which represent approximately 14% and 12% of the pool, respectively, are
1211 Avenue of the Americas located in New York City and 125 High Street in Boston, MA, both of
which are Class A office buildings in strong locations within their markets and are owned by highly
regarded institutional real estate companies. No loan outside the top two loans represents
greater than 6.5% of the pool.
The LBUBS C Bond has over 10.0% credit support (higher than at origination) which does not factor
in the borrowers equity in the underlying properties. Based on the LBUBS C Bonds position within
the capital structure, the latest reported loan-to-value ratio was 59.8%. The income on the
properties securing the LBUBS C Bond, as reported by the trustee on July 15, 2011, covers debt
service payments by 1.6 times. The LBUBS C Bond has a coupon of 5.48% and a weighted average life
of approximately 5.1 years. At the purchase price of 68% of par, the LBUBS C Bond has a current
cash yield of 8.06%.
The information in this Current Report is being furnished and shall not be deemed filed for the
purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to
the liabilities of that Section. The information in this Current Report shall not be incorporated
by reference into any registration statement or other document pursuant to the Securities Act of
1933, as amended.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
NORTHSTAR REAL ESTATE INCOME TRUST, INC. | ||||
Date:
August 23, 2011
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By: | /s/ Albert Tylis
|
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Chief Operating Officer, General Counsel and | ||||
Secretary |