Investment Approach

Investment
Approach

Why Invest in NorthStar Capital?

Investing Throughout the Commercial Real Estate Capital Structure May Generate Attractive Risk-Adjusted Returns

NorthStar Capital intends to invest in a diversified portfolio of real estate and real estate-related investments, including but not limited to senior, subordinate and mezzanine loans and preferred equity. Additionally, NorthStar Capital may have the flexibility to acquire commercial real estate (CRE) through direct and indirect investments including, private equity funds and other joint ventures. These equity investments are intended to offer investors an opportunity for potential capital appreciation.

As an experienced CRE lender and owner, NorthStar Capital will analyze each investment opportunity in order to identify which target investment will potentially generate the most compelling risk-adjusted returns that may provide shareholders attractive and consistent income through cash distributions, preserve and protect shareholders’ capital and provide an opportunity for potential appreciation.

 

CapitalStack

While CRE debt investments may provide greater downside protection than CRE equity investments, NorthStar Capital’s investments vary in degree of risk depending on their place in the capital structure and can decrease in value, lose value or fluctuate.


Potential Cash Flow Generation

NorthStar Capital focuses on lending to experienced borrowers while also participating in equity investments with institutional partners. These borrowers/partners may be comprised of experienced real estate investors, ranging from traded equity REITs, institutional funds and high-net-worth CRE owners and operators. The debt investments originated by NorthStar Capital will bear contractual interest obligations, which may be more readily available for distribution to investors than investments in real estate equity.

 

Funnel

There is no guarantee of distributions. Distributions may be paid be paid from sources other than cash flow from operations, such as offering proceeds, borrowings or sales of assets and distributions may exceed earnings and may constitute a return of capital.Investors in NorthStar Real Estate Capital Income Fund-T (Fund-T) shares will be subject to a distribution and servicing fee at an annualized rate of 1.0% of the net asset value (NAV) per share in order to compensate the dealer manager and participating broker-dealers and investment representatives for services and expenses related to the marketing, sale and distribution of Fund-T’s shares, which will begin the first month after the completion of the Fund-T offering. Because the distribution and servicing fee is paid out of Fund-T assets on a monthly basis, over time these fees will increase the cost of an investment in Fund-T.


Debt Focus May Help Preserve Capital

NorthStar Capital's primary lending focus may provide protection against losses in periods of declining real estate valuations. In typical CRE capital structure, loans and bonds have a higher claim to underlying collateral compared to equity investments. Therefore, CRE debt investors may be better insulated should property values decline. While commercial real estate debt investments may provide greater downside protection, certain commercial real estate debt investments within the capital structure also vary in degree of risk and can decrease or fluctuate in value.

 

Cushion

There can be no assurance that an investment in NorthStar Capital will protect against loss. Investing in commercial real estate debt focused assets involve various risks including but not limited to unfavorable market conditions, loss of principal and limited liquidity.

 

NorthStar Real Estate Capital Income Master Fund (“NorthStar Capital”) is a master fund in a master/feeder structure, which pools investor capital raised through its feeder funds, NorthStar Real Estate Capital Income Fund and NorthStar Real Estate Income Fund-T (each a “Fund” and together the “Funds”). Each Fund invests substantially all of its assets in NorthStar Capital. Investors in a Fund are purchasing shares of a feeder fund, not NorthStar Capital. The investment results of each of the Funds are directly dependent on the investment results of NorthStar Capital, which seeks to execute the investment strategies described in each Fund’s prospectus.

This website is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the applicable prospectus. This website must be read in conjunction with the applicable Fund’s prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. Before investing, investors are advised to carefully read and consider the investment objectives, risks, charges and expenses of NorthStar Capital and the Fund in which they are considering an investment. Each Fund’s prospectus contains this and other information about the Fund. Investors may obtain a copy of a Fund’s prospectus by visiting www.NorthStarSecurities.com/CREfund or by calling 877.940.8777. No offering is made except pursuant to a registration statement declared effective by the U.S. Securities and Exchange Commission (the “SEC”). Neither the SEC nor any state securities regulator has approved or disapproved of the Funds common shares, determined if a prospectus is truthful or complete or passed on or endorsed the merits of the Fund’s offerings. Any representation to the contrary is a criminal offense. NorthStar Securities, LLC is the exclusive wholesale marketing agent for NorthStar Capital. NorthStar Securities, LLC is the exclusive wholesale marketing agent for the Funds. ALPS Distributors, Inc., member FINRA, is the distributor of the Funds. NorthStar Securities, LLC and ALPS Distributors, Inc. are not affiliated. NorthStar Securities, LLC is doing business as NorthStar BD Securities, LLC (DE) in the following states: FL, GA, TX and WA.

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