iStar Picks Up Falcon

NEW YORK CITY-iStar Financial signed a definitive agreement to acquire auto dealer REIT Falcon Financial for $7.50 per share in cash or approximately $120 million. The board of directors of both companies have approved the agreement, which is expected to close in the first half of the year.

“We continue to seek opportunities in the underserved segments of the real estate market that can benefit from our flexible capital solutions and unmatched customer service approach to lending,” says Jay Sugarman, chairman and CEO of iStar Financial.

According to Fitch Ratings, iStar provided substantially all of Falcon’s on-balance sheet financing. In fact, the company has underwritten most of the loans originated by Falcon over the past year.