Fitch Affirms NS Servicing's CMBS Special Servicer Rating

  Fitch Affirms NS Servicing's CMBS Special Servicer Rating

Business Wire

NEW YORK -- May 29, 2013

Fitch Ratings has affirmed NS Servicing I & II, LLC's (NSS) special servicer
rating at 'CSS3+'. The ratings reflect Fitch's assessment of the company's
experienced management team and asset managers, commercial workout experience
including through CDOs, and adequate asset management technology. The rating
also reflects the company's limited experience working out CMBS loans and the
financial support provided by the parent, NorthStar Realty Finance Corp (NRF).

NSS is a captive servicer, responsible for servicing NRF originated loans in
CDO transactions (making up the non-CMBS servicing portfolio), as well as CMBS
securitizations where NRF or an affiliate purchased the controlling class
certificates. NRF is a commercial real estate investment and asset management
company, and has three primary business lines: real estate debt, which is
focused on originating, structuring, and acquiring senior and subordinate
debt; commercial real estate investments including net lease, healthcare,
manufactured housing companies and other real estate such as multifamily; and
real estate securities, which consist of a wide range of commercial real
estate debt securities. NRF is also focused on asset management business
predominantly raising and managing capital on a fee basis.

During 2013, the company closed $1.6 billion of commercial real estate
investments for its balance sheet including $204 million of commercial real
estate loans. NRF and one of its sponsored non-traded REITs, NorthStar Real
Estate Income Trust, Inc. (NorthStar Income) issued a CMBS securitization in
2012 totaling $351 million and appointed NSS as special servicer. NRF and
NorthStar Income recently purchased two B-pieces and appointed NSS as special
servicer for the 2011 and 2013 vintage CMBS transactions.

As of March 31, 2013, NSS was named special servicer on 137 CMBS loans
totaling $3.6 billion and is actively special servicing four of those loans
representing $90.3 million, including one real estate owned asset totaling $18
million. As of the same date, NSS was actively special servicing 11 non-CMBS
loans totaling $229.3 million, including real estate owned assets totaling
$28.9 million.

Fitch's servicer rating methodology is described in Fitch's reports 'U.S.
Commercial Mortgage Servicer Rating Criteria,' dated Feb. 18, 2011, and
'Rating Criteria for Structured Finance Servicers' dated Feb. 6, 2013,
available on Fitch's web site www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. Commercial Mortgage Servicer Rating Criteria' Feb. 18, 2011;

--'Rating Criteria for Structured Finance Servicers' Feb. 6, 2013;

-- 'Fitch Places Berkeley Point's CMBS Servicer Ratings on Watch Negative
Following DBMS Acquisition' April 18, 2012.

Applicable Criteria and Related Research:

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699690

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=792398

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Contact:

Fitch Ratings
Primary Analyst
James Bauer, +1-212-908-0343
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Melissa Che, +1-212-908-9107
Director
or
Committee Chairperson
Adam Fox, +1-212-908-0869
Senior Director
or
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sandro.scenga@fitchratings.com
 
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