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NorthStar Realty Finance closes $865M acquisition

NEW YORK (AP) -- NorthStar Realty Finance Corp. said Monday that it closed its acquisition of a manufactured housing portfolio comprised of 71 communities for about $865 million.

The New York-based commercial real estate investment firm said the communities contain about 17,000 pad rental sites in five states, mainly Florida and Utah.

NorthStar financed the deal with a $640 million, 10-year mortgage with a fixed interest rate of 4.02 percent. NorthStar said it expects to earn an initial current yield of about 14 percent on its equity investment.

NorthStar shares fell 5 cents to $9.43 in morning trading.