NorthStar to buy loan origination business.NorthStar Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Finance Corp. has entered into a definitive purchase agreement with Allied Capital Corporation to acquire Timarron Capital, Inc. Timarron, based in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. , was organized by former senior executives of Principal Financial and other leading financial institutions to develop a nationwide commercial mortgage loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. platform. The closing of the acquisition is expected to occur in January of 2006. Allied Capital has agreed to continue to provide Timarron with warehouse financing to fund its origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real activities through the closing. The purchase price will be between $2.0 million and $2.6 million, depending upon whether certain performance hurdles are achieved. Following the closing of the acquisition, Timarron will be renamed NorthStar Mortgage Capital. NorthStar Mortgage Capital will originate commercial mortgage loans for NorthStar's commercial real estate debt portfolio. David Hamamoto, president and chief executive officer of NorthStar, commented, "This acquisition represents an exciting strategic opportunity for NorthStar to expand its origination capability by acquiring a team of very experienced and well respected real estate lending professionals. "We believe there are significant benefits associated with originating more commercial first mortgage loans directly, including the opportunity to develop closer relationships with a growing customer base while retaining greater control over the structuring process." Timarron is led by Craig Barnes, who held senior positions in real estate lending and investment at Principal Financial prior to forming Timarron. The senior management team at Timarron has an average of approximately 18 years of experience at major financial institutions in real estate and related fields, and the majority of the team has worked together for 15 years. NorthStar Realty Finance Corp. is an internally managed REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). that makes investments in commercial real estate debt, real estate securities and net lease properties. Allied Capital Corporation (NYSE NYSE See: New York Stock Exchange :ALD ALD abbr. adrenoleukodystrophy ALD, n.pr See adrenoleukodystrophy. ALD aldolase. ) is a business development company with total assets of more than $3.0 billion. |
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