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  <p style="border:none;font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;padding:0in;text-align:center;text-transform:none;">&nbsp;</p>
  
  <p style="border:none;font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;padding:0in;text-align:center;text-transform:uppercase;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;text-transform:none;">UNITED STATES<br>
  SECURITIES AND EXCHANGE COMMISSION<br>
  </font></b><font style="text-transform:none;">WASHINGTON, D.C. 20549</font></p>
  
  </div>
  
  <p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:none;">&nbsp;</p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;text-transform:none;">FORM&nbsp;8-K</font></b></p>
  
  <p style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:center;text-transform:none;">&nbsp;</p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;text-transform:none;">CURRENT REPORT<br>
  PURSUANT TO SECTION&nbsp;13 OR 15(D)&nbsp;OF THE SECURITIES EXCHANGE ACT OF
  1934</font></b></p>
  
  <p style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:center;text-transform:none;">&nbsp;</p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of earliest event reported):<br>
  <b>May&nbsp;22, 2008</b></font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">NORTHSTAR REALTY FINANCE CORP.<br>
  </font></b>(Exact name of registrant as specified in its charter)</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Maryland</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">No.&nbsp;001-32330</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">No.&nbsp;11-3707493</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other jurisdiction<br>
    of incorporation)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission</font></p>
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">File Number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer<br>
    Identification No.)</font></p>
    </td>
   </tr>
   <tr>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="66%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:66.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">399 Park Avenue</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="66%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:66.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">18<sup>th</sup> Floor</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="66%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:66.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">New York, New York </font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">10022</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="66%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:66.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant&#146;s telephone number, including area code:<b>  <strong><b>(212) 547-2600</b></strong></b></font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">N/A</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if changed since last report)</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Check the appropriate box below if the Form&nbsp;8-K
  filing is intended to simultaneously satisfy the filing obligation of the
  registrant under any of the following provisions (see General Instruction A.2.
  below):</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font> Written communications pursuant to Rule&nbsp;425
  under the Securities Act (17 CFR 230.425)</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font> Soliciting material pursuant to Rule&nbsp;14a-12
  under the Exchange Act (17 CFR 240.14a-12)</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under
  the Exchange Act (17&nbsp;CFR 240.14d-2(b))</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under
  the Exchange Act (17&nbsp;CFR 240.13e-4(c))</p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\dchen\08-15429-1\task2963436\15429-1-ba.htm',USER='dchen',CD='May 28 16:57 2008' -->
  
  
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;width:93.04%;">
   <tr>
    <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.56%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item&nbsp;1.01</font></b></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.44%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Entry into a Material Definitive Agreement.</font></b></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;28, 2008, NRFC
  NNN Holdings, LLC (&#147;Triple Net Holdings&#148;), a Delaware limited liability company
  that is a wholly-owned subsidiary of NorthStar Realty Finance Corp. (&#147;NorthStar&#148;),
  issued $80 million aggregate principal amount of 11.50% Exchangeable Senior
  Notes due 2013 (the &#147;Notes&#148;) in a private offering exempt from registration in
  reliance on Rule&nbsp;144A under the Securities Act of 1933, as amended (the &#147;Securities
  Act&#148;).&#160; The Notes were issued pursuant to
  an Indenture, dated as of May&nbsp;28, 2008 (the &#147;Indenture&#148;), among NorthStar,
  NorthStar Realty Finance Limited Partnership and NRFC Sub-REIT Corp. as
  Guarantors, Triple Net Holdings, and Wilmington Trust Company, as Trustee (the &#147;Trustee&#148;),
  and are unsecured obligations of Triple Net Holdings, except that Triple Net
  Holdings&#146; obligations under the Notes will be secured by an amount equal to one
  semi-annual interest payment, which will be held in a lockbox for the benefit
  of the holders of Notes. &#160;Payments on the
  Notes are unconditionally guaranteed by NorthStar, NorthStar Realty Finance
  Limited Partnership and NRFC Sub-REIT Corp. on an unsecured basis. The Notes
  are exchangeable into shares of the common stock of NorthStar (the &#147;Common
  Stock&#148;) under the circumstances described in Item&nbsp;2.03 below.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A copy of the Indenture is
  filed as Exhibit&nbsp;4.1 hereto and incorporated by reference herein.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;width:93.04%;">
   <tr>
    <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.56%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item&nbsp;1.02</font></b></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.44%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Termination of a Material Definitive Agreement. </font></b></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Given certain restrictive
  covenants set forth in the Revolving Credit Agreement, dated November 3, 2006
  by and among NorthStar, NorthStar Realty Finance Limited Partnership, NRFC
  Sub-REIT Corp. and NS Advisors, LLC (the &#147;Borrowers&#148;) and KeyBanc Capital Markets
  and Bank of America, N.A. (the &#147;Credit Agreement&#148;), effective May 28, 2008, the
  Borrowers voluntarily terminated the Credit Agreement in order to permit the
  issuance of the Notes. &#160;The Credit
  Agreement was set to expire in November, 2009, and no amounts were outstanding
  under the Credit Agreement at the time of termination.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;width:93.04%;">
   <tr>
    <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.56%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item&nbsp;2.03</font></b></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.44%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Creation of a Direct Financial Obligation or an Obligation
    under an Off-Balance Sheet Arrangement of a Registrant. </font></b></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;28, 2008, Triple
  Net Holdings issued $80 million aggregate principal amount of Notes pursuant to
  a purchase agreement (the &#147;Purchase Agreement&#148;) by and among Triple Net
  Holdings, NorthStar, NorthStar Realty Finance Limited Partnership, NRFC
  Sub-REIT Corp. and Wachovia Capital Markets, LLC and JMP Securities LLC (collectively,
  the &#147;Initial Purchasers&#148;) under which Triple Net Holdings agreed to sell the Notes
  in a private offering exempt from registration in reliance on Rule&nbsp;144A under
  the Securities Act.&#160; The Purchase
  Agreement contemplates the resale by the Initial Purchasers of the Notes to
  qualified institutional buyers in reliance on Rule&nbsp;144A under the
  Securities Act.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest on the Notes will
  be payable semi-annually in arrears on June&nbsp;15 and December&nbsp;15 of
  each year, beginning December&nbsp;15, 2008, and the Notes will mature on June&nbsp;15,
  2013 unless previously redeemed by Triple Net Holdings, repurchased by Triple
  Net Holdings or exchanged in accordance with their terms prior to such date. &#160;Terms used herein but not defined herein have </font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
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  <div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the
  meaning set forth in the Indenture filed as Exhibit&nbsp;4.1 hereto and
  incorporated by reference herein.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prior to June&nbsp;15, 2011,
  Triple Net Holdings will not have the right to redeem the Notes, except (i)&nbsp;to
  preserve NorthStar&#146;s status as a real estate investment trust for U.S. federal
  income tax purposes and (ii)&nbsp;on or after June&nbsp;15, 2011 if during any
  period of 30&nbsp;consecutive Trading Days the Closing Sale Price of the Common
  Stock is greater than or equal to 130% of the Exchange Price at the beginning
  of such period for at least 20&nbsp;Trading Days within such period of
  30&nbsp;consecutive Trading Days. In the event of a Change in Control, holders
  of Notes may require Triple Net Holdings to repurchase the Notes, in whole or
  in part, for cash equal to 100% of the principal amount of Notes to be
  repurchased, plus accrued and unpaid interest, if any, to, but excluding, the
  date of repurchase.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Notes are exchangeable
  into, at Triple Net Holdings&#146; election, cash, Common Stock or a combination of
  cash and Common Stock, upon the satisfaction of certain conditions, including
  conditions relating to the market price of the Common Stock, the trading price
  of the Notes, the occurrence of certain corporate events and transactions, a
  call for redemption of the Notes and certain failures of NorthStar to maintain
  a listing of the Common Stock on a national securities exchange. The initial
  Exchange Rate for each $1,000 principal amount of Notes is 83.3333 shares of
  Common Stock, representing an exchange price of approximately $12.00 per share.
  The initial Exchange Rate is subject to adjustment under certain circumstances
  described in the Indenture.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The sale of $80 million
  principal amount of Notes was completed on May&nbsp;28, 2008. &#160;Net proceeds from the offering will be used to
  acquire investments relating to NorthStar&#146;s business and for general corporate
  purposes, as well as to fund the lockbox with an initial amount equal to one
  semi-annual interest payment on the Notes.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NorthStar has elected to
  fair value the Notes consistent with the treatment of its prior series of
  exchangeable notes; therefore, NorthStar will expense, rather than capitalize,
  the estimated $5 million of related underwriting fees and expenses in its
  second quarter 2008 financial statements.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with Triple
  Net Holdings&#146; offering of the Notes, NorthStar entered into a registration
  rights agreement with the Initial Purchasers, pursuant to which NorthStar has
  agreed to file a registration statement under the Securities Act covering the
  resale of the shares of the Common Stock deliverable upon exchange of the
  Notes, or to designate an existing shelf registration statement to cover the
  resale of such shares of Common Stock. Triple Net Holdings will be required to
  pay specified additional interest to the holders of the Notes if NorthStar
  fails to comply with its obligations to register the Common Stock issuable upon
  exchange of the Notes within specified time periods, or if the registration
  statement ceases to be effective or the use of the prospectus is suspended for
  specified time periods.&#160; Triple Net
  Holdings will not be required to pay additional interest with respect to any
  Note after it has been converted for any Common Stock.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Notes, the guarantees of
  the Notes by NorthStar, NorthStar Realty Finance Limited Partnership and NRFC
  Sub-REIT Corp. and the underlying Common Stock issuable upon </font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\dchen\08-15429-1\task2963436\15429-1-ba.htm',USER='dchen',CD='May 28 16:57 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">exchange
  of the Notes have not been registered under the Securities Act or the
  securities laws of any other jurisdiction and may not be offered or sold in the
  United States absent registration or an applicable exemption from registration
  requirements. This Current Report on Form&nbsp;8-K does not constitute an offer
  to sell, or the solicitation of an offer to buy, any security and shall not
  constitute an offer, solicitation or sale in any jurisdiction in which such
  offering would be unlawful.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.88%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item&nbsp;3.02</font></b></p>
    </td>
    <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.12%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Unregistered Sales of Equity Securities. </font></b></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information set forth
  under Item&nbsp;2.03 of this Current Report on Form&nbsp;8-K with respect to
  the Notes and the exchange thereof for Common Stock is incorporated herein by
  reference.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\dchen\08-15429-1\task2963436\15429-1-ba.htm',USER='dchen',CD='May 28 16:57 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.01&#160; Financial Statements and Exhibits.</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:4.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp; Exhibits.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:4.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:4.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following exhibits are
  furnished as part of this Report on Form&nbsp;8-K:</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="6%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:6.92%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit<br>
    Number</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.84%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="90%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:90.26%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="6%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:6.92%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.84%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:90.26%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.92%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.84%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.26%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indenture, dated as of May&nbsp;28, 2008, among NRFC NNN Holdings,
    LLC, NorthStar Realty Finance Corp., NorthStar Realty Finance Limited Partnership
    and NRFC Sub-REIT Corp. as Guarantors, and Wilmington Trust Company, as
    Trustee.</font></p>
    </td>
   </tr>
   <tr>
    <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.92%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.84%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.26%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.92%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.84%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.26%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of Note of NRFC NNN Holdings, LLC (included in
    Exhibit&nbsp;4.1).</font></p>
    </td>
   </tr>
   <tr>
    <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.92%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.84%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.26%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.92%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.84%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.26%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of Guarantee of NorthStar Realty Finance Corp., NorthStar
    Realty Finance Limited Partnership and NRFC Sub-REIT Corp. (included in
    Exhibit&nbsp;4.1).</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\dchen\08-15429-1\task2963436\15429-1-ba.htm',USER='dchen',CD='May 28 16:57 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURE</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities
  Exchange Act of 1934, the registrant has duly caused this report to be signed
  on its behalf by the undersigned hereunto duly authorized.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.1%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="48%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:48.9%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NORTHSTAR REALTY FINANCE CORP.</font></p>
    </td>
   </tr>
   <tr>
    <td width="58%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:58.06%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.38%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="58%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:58.06%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.38%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="58%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:58.06%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: May&nbsp;28, 2008</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.38%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:37.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Albert Tylis</font></p>
    </td>
   </tr>
   <tr>
    <td width="58%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:58.06%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.38%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="37%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:37.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Albert Tylis</font></p>
    </td>
   </tr>
   <tr>
    <td width="58%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:58.06%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.38%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive Vice President</font></p>
    </td>
   </tr>
   <tr>
    <td width="58%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:58.06%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.38%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and General Counsel</font></p>
    </td>
   </tr>
   <tr height="0">
    <td width="382" style="border:none;"></td>
    <td width="52" style="border:none;"></td>
    <td width="33" style="border:none;"></td>
    <td width="281" style="border:none;"></td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\dchen\08-15429-1\task2963436\15429-1-ba.htm',USER='dchen',CD='May 28 16:57 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-indent:0in;text-transform:uppercase;"><b><font face="Times New Roman" style="font-weight:normal;text-transform:none;">&nbsp;</font></b></p>
  
  <p align="center" style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-indent:0in;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;text-transform:none;">EXHIBIT INDEX</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.08%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit<br>
    Number</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="90%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:90.16%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="7%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:7.08%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:90.16%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.08%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.16%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indenture, dated as of May&nbsp;28, 2008, among NRFC NNN Holdings,
    LLC, NorthStar Realty Finance Corp., NorthStar Realty Finance Limited
    Partnership and NRFC Sub-REIT Corp., as Guarantors, and Wilmington Trust
    Company, as Trustee.</font></p>
    </td>
   </tr>
   <tr>
    <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.08%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.16%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.08%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.16%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of Note of NRFC NNN Holdings, LLC (included in Exhibit&nbsp;4.1).</font></p>
    </td>
   </tr>
   <tr>
    <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.08%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.16%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.08%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.16%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of Guarantee of NorthStar Realty Finance Corp., NorthStar
    Realty Finance Limited Partnership and NRFC Sub-REIT Corp. (included in
    Exhibit&nbsp;4.1).</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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metadata_filer: {"company-data": {"conformed-name": "NORTHSTAR REALTY", "cik": "0001273801", "assigned-sic": "6798", "irs-number": "000000000", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32330", "film-number": "08864218"}, "business-address": {"street1": "399 PARK AVENUE,", "street2": "18TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "212-547-2640"}, "mail-address": {"street1": "399 PARK AVENUE,", "street2": "18TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022"}}
text: UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
  1934
  Date of Report (Date of earliest event reported):
  May 22, 2008
  NORTHSTAR REALTY FINANCE CORP.
  (Exact name of registrant as specified in its charter)
  Maryland
  No. 001-32330
  No. 11-3707493
  (State or other jurisdiction
  of incorporation)
  (Commission
  File Number)
  (IRS Employer
  Identification No.)
  399 Park Avenue
  18
  th
  Floor
  New York, New York
  10022
  (Address of principal executive offices)
  (Zip Code)
  Registrant's telephone number, including area code:
  (212) 547-2600
  N/A
  (Former name or former address, if changed since last report)
  Check the appropriate box below if the Form 8-K
  filing is intended to simultaneously satisfy the filing obligation of the
  registrant under any of the following provisions (see General Instruction A.2.
  below):
  o
  Written communications pursuant to Rule 425
  under the Securities Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12
  under the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement communications pursuant to Rule 14d-2(b) under
  the Exchange Act (17 CFR 240.14d-2(b))
  o
  Pre-commencement communications pursuant to Rule 13e-4(c) under
  the Exchange Act (17 CFR 240.13e-4(c))
  Item 1.01
  Entry into a Material Definitive Agreement.
  On May 28, 2008, NRFC
  NNN Holdings, LLC ("Triple Net Holdings"), a Delaware limited liability company
  that is a wholly-owned subsidiary of NorthStar Realty Finance Corp. ("NorthStar"),
  issued $80 million aggregate principal amount of 11.50% Exchangeable Senior
  Notes due 2013 (the "Notes") in a private offering exempt from registration in
  reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities
  Act").  The Notes were issued pursuant to
  an Indenture, dated as of May 28, 2008 (the "Indenture"), among NorthStar,
  NorthStar Realty Finance Limited Partnership and NRFC Sub-REIT Corp. as
  Guarantors, Triple Net Holdings, and Wilmington Trust Company, as Trustee (the "Trustee"),
  and are unsecured obligations of Triple Net Holdings, except that Triple Net
  Holdings' obligations under the Notes will be secured by an amount equal to one
  semi-annual interest payment, which will be held in a lockbox for the benefit
  of the holders of Notes.  Payments on the
  Notes are unconditionally guaranteed by NorthStar, NorthStar Realty Finance
  Limited Partnership and NRFC Sub-REIT Corp. on an unsecured basis. The Notes
  are exchangeable into shares of the common stock of NorthStar (the "Common
  Stock") under the circumstances described in Item 2.03 below.
  A copy of the Indenture is
  filed as Exhibit 4.1 hereto and incorporated by reference herein.
  Item 1.02
  Termination of a Material Definitive Agreement.
  Given certain restrictive
  covenants set forth in the Revolving Credit Agreement, dated November 3, 2006
  by and among NorthStar, NorthStar Realty Finance Limited Partnership, NRFC
  Sub-REIT Corp. and NS Advisors, LLC (the "Borrowers") and KeyBanc Capital Markets
  and Bank of America, N.A. (the "Credit Agreement"), effective May 28, 2008, the
  Borrowers voluntarily terminated the Credit Agreement in order to permit the
  issuance of the Notes.  The Credit
  Agreement was set to expire in November, 2009, and no amounts were outstanding
  under the Credit Agreement at the time of termination.
  Item 2.03
  Creation of a Direct Financial Obligation or an Obligation
    under an Off-Balance Sheet Arrangement of a Registrant.
  On May 28, 2008, Triple
  Net Holdings issued $80 million aggregate principal amount of Notes pursuant to
  a purchase agreement (the "Purchase Agreement") by and among Triple Net
  Holdings, NorthStar, NorthStar Realty Finance Limited Partnership, NRFC
  Sub-REIT Corp. and Wachovia Capital Markets, LLC and JMP Securities LLC (collectively,
  the "Initial Purchasers") under which Triple Net Holdings agreed to sell the Notes
  in a private offering exempt from registration in reliance on Rule 144A under
  the Securities Act.  The Purchase
  Agreement contemplates the resale by the Initial Purchasers of the Notes to
  qualified institutional buyers in reliance on Rule 144A under the
  Securities Act.
  Interest on the Notes will
  be payable semi-annually in arrears on June 15 and December 15 of
  each year, beginning December 15, 2008, and the Notes will mature on June 15,
  2013 unless previously redeemed by Triple Net Holdings, repurchased by Triple
  Net Holdings or exchanged in accordance with their terms prior to such date.  Terms used herein but not defined herein have
  2
  the
  meaning set forth in the Indenture filed as Exhibit 4.1 hereto and
  incorporated by reference herein.
  Prior to June 15, 2011,
  Triple Net Holdings will not have the right to redeem the Notes, except (i) to
  preserve NorthStar's status as a real estate investment trust for U.S. federal
  income tax purposes and (ii) on or after June 15, 2011 if during any
  period of 30 consecutive Trading Days the Closing Sale Price of the Common
  Stock is greater than or equal to 130% of the Exchange Price at the beginning
  of such period for at least 20 Trading Days within such period of
  30 consecutive Trading Days. In the event of a Change in Control, holders
  of Notes may require Triple Net Holdings to repurchase the Notes, in whole or
  in part, for cash equal to 100% of the principal amount of Notes to be
  repurchased, plus accrued and unpaid interest, if any, to, but excluding, the
  date of repurchase.
  The Notes are exchangeable
  into, at Triple Net Holdings' election, cash, Common Stock or a combination of
  cash and Common Stock, upon the satisfaction of certain conditions, including
  conditions relating to the market price of the Common Stock, the trading price
  of the Notes, the occurrence of certain corporate events and transactions, a
  call for redemption of the Notes and certain failures of NorthStar to maintain
  a listing of the Common Stock on a national securities exchange. The initial
  Exchange Rate for each $1,000 principal amount of Notes is 83.3333 shares of
  Common Stock, representing an exchange price of approximately $12.00 per share.
  The initial Exchange Rate is subject to adjustment under certain circumstances
  described in the Indenture.
  The sale of $80 million
  principal amount of Notes was completed on May 28, 2008.  Net proceeds from the offering will be used to
  acquire investments relating to NorthStar's business and for general corporate
  purposes, as well as to fund the lockbox with an initial amount equal to one
  semi-annual interest payment on the Notes.
  NorthStar has elected to
  fair value the Notes consistent with the treatment of its prior series of
  exchangeable notes; therefore, NorthStar will expense, rather than capitalize,
  the estimated $5 million of related underwriting fees and expenses in its
  second quarter 2008 financial statements.
  In connection with Triple
  Net Holdings' offering of the Notes, NorthStar entered into a registration
  rights agreement with the Initial Purchasers, pursuant to which NorthStar has
  agreed to file a registration statement under the Securities Act covering the
  resale of the shares of the Common Stock deliverable upon exchange of the
  Notes, or to designate an existing shelf registration statement to cover the
  resale of such shares of Common Stock. Triple Net Holdings will be required to
  pay specified additional interest to the holders of the Notes if NorthStar
  fails to comply with its obligations to register the Common Stock issuable upon
  exchange of the Notes within specified time periods, or if the registration
  statement ceases to be effective or the use of the prospectus is suspended for
  specified time periods.  Triple Net
  Holdings will not be required to pay additional interest with respect to any
  Note after it has been converted for any Common Stock.
  The Notes, the guarantees of
  the Notes by NorthStar, NorthStar Realty Finance Limited Partnership and NRFC
  Sub-REIT Corp. and the underlying Common Stock issuable upon
  3
  exchange
  of the Notes have not been registered under the Securities Act or the
  securities laws of any other jurisdiction and may not be offered or sold in the
  United States absent registration or an applicable exemption from registration
  requirements. This Current Report on Form 8-K does not constitute an offer
  to sell, or the solicitation of an offer to buy, any security and shall not
  constitute an offer, solicitation or sale in any jurisdiction in which such
  offering would be unlawful.
  Item 3.02
  Unregistered Sales of Equity Securities.
  The information set forth
  under Item 2.03 of this Current Report on Form 8-K with respect to
  the Notes and the exchange thereof for Common Stock is incorporated herein by
  reference.
  4
  Item 9.01  Financial Statements and Exhibits.
  (d)  Exhibits.
  The following exhibits are
  furnished as part of this Report on Form 8-K:
  Exhibit
  Number
  Description
  4.1
  Indenture, dated as of May 28, 2008, among NRFC NNN Holdings,
    LLC, NorthStar Realty Finance Corp., NorthStar Realty Finance Limited Partnership
    and NRFC Sub-REIT Corp. as Guarantors, and Wilmington Trust Company, as
    Trustee.
  4.2
  Form of Note of NRFC NNN Holdings, LLC (included in
    Exhibit 4.1).
  4.3
  Form of Guarantee of NorthStar Realty Finance Corp., NorthStar
    Realty Finance Limited Partnership and NRFC Sub-REIT Corp. (included in
    Exhibit 4.1).
  SIGNATURE
  Pursuant to the requirements of the Securities
  Exchange Act of 1934, the registrant has duly caused this report to be signed
  on its behalf by the undersigned hereunto duly authorized.
  NORTHSTAR REALTY FINANCE CORP.
  Date: May 28, 2008
  By:
  /s/ Albert Tylis
  Albert Tylis
  Executive Vice President
  and General Counsel
  EXHIBIT INDEX
  Exhibit
  Number
  Description
  4.1
  Indenture, dated as of May 28, 2008, among NRFC NNN Holdings,
    LLC, NorthStar Realty Finance Corp., NorthStar Realty Finance Limited
    Partnership and NRFC Sub-REIT Corp., as Guarantors, and Wilmington Trust
    Company, as Trustee.
  4.2
  Form of Note of NRFC NNN Holdings, LLC (included in Exhibit 4.1).
  4.3
  Form of Guarantee of NorthStar Realty Finance Corp., NorthStar
    Realty Finance Limited Partnership and NRFC Sub-REIT Corp. (included in
    Exhibit 4.1).