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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
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      AND EXCHANGE COMMISSION</strong></font></div>
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      DC 20549 </strong></font></div>
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      8-K </strong></font></div>
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      REPORT </strong></font></div>
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      to Section&#160;13 or 15(d) of the Securities Exchange Act of 1934
</strong></font></div>
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      of
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      17, 2006 (March 14, 2006) </strong></font></div>
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      Realty Finance Corp.</strong></font></div>
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      name of registrant as specified in its charter) </font></div>
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                Madison Avenue, 16</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup><strong>th</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
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      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below): </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01. Entry Into a Material Definitive Agreement. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March
      14, 2006, the Compensation Committee of the Board of Directors (the
&#8220;Compensation Committee&#8221;) of NorthStar Realty Finance Corp. (the &#8220;Company&#8221;)
      approved the form of award agreement to be used to grant awards under the
      NorthStar Realty Finance Corp. 2006 Outperformance Plan, a long-term incentive
      compensation program that was approved by the Compensation Committee on January
      10, 2006 (the &#8220;2006 Outperformance Plan&#8221; or the &#8220;Plan&#8221;).</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      2006 Outperformance Plan, award recipients will share in a &#8220;performance pool&#8221; if
      the Company&#8217;s total return to stockholders for the period from January&#160;1,
      2006 (measured based on the average closing price of our common stock for the
      20
      trading days prior to January 1, 2006 through December&#160;31, 2008 exceeds a
      cumulative total return to stockholders of 30%, including both share
      appreciation and dividends paid. The size of the pool will be 10% of the
      outperformance amount in excess of the 30% benchmark, subject to a maximum
      dilution cap equal to $40 million, exclusive of accrued dividends referred
      to
      below. Each employee&#8217;s award under the 2006 Outperformance Plan will be
      designated as a specified percentage of the aggregate performance pool. Assuming
      the 30% benchmark is achieved, the performance pool that is established under
      the Plan will be allocated among the Company&#8217;s employees in accordance with the
      percentage specified in each employee&#8217;s award agreement. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Awards
      will be made under our 2004 Omnibus Incentive Plan (or successor plan) in the
      form of partnership units (&#8220;LTIP Units&#8221;) of NorthStar Realty Finance Limited
      Partnership, a Delaware limited partnership (the &#8220;Operating Partnership&#8221;), that
      are ultimately exchangeable for shares of our common stock or cash, at our
      election. The Plan provides that if the performance pool is established, each
      award recipient will be entitled to the dividends that would have been paid
      by
      the Company had the LTIP Units (that were earned based on the size of the pool)
      been issued on the date the Plan was approved.&#160; Those dividends will be
      paid by the issuance of additional LTIP Units.&#160; Thereafter, dividends will
      be paid on the outstanding LTIP Units, whether or not vested. In the event
      the
      potential performance pool reaches the maximum dilution cap before December
      31,
      2008 and remains at that level or higher for 30 consecutive days, the
      performance period will end early and the pool will be formed on the last day
      of
      such 30 day period.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      the amount of the awards earned under the Plan will be determined when the
      performance pool is established, not all of the LTIP Units earned pursuant
      to
      the awards vest at that time. Instead, 50% of the awards vest on December 31,
      2008 and 25% of the awards vest on each of the first two anniversaries
      thereafter based on continued employment. In the event of a change in control
      of
      the Company prior to the establishment of the pool, then (1) the performance
      period will be shortened to end on a date immediately prior to the public
      announcement of the change of control event, and (2) the total shareholder
      return benchmark will be adjusted on a pro rata basis for the shortened
      performance period.&#160; A performance pool will be established as described
      above if the adjusted benchmark target is achieved and all of the LTIP Units
      earned pursuant to the awards will be fully vested.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      a
      change in control occurs after the performance period has ended, all unvested
      LTIP Units earned under the Plan will fully vest upon the change in
      control.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      determinations, interpretations and assumptions relating to the vesting and
      calculation of the performance awards will be made by the Compensation
      Committee.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March
      14, 2006, the Company also amended the Agreement of Limited Partnership of
      the
      Operating Partnership in order to establish the terms of the LTIP Units under
      the Plan (referred to as &#8220;OPP Units&#8221;). The OPP Units are a class of limited
      partner interests structured to qualify as &#8220;profits interests&#8221; for federal
      income tax purposes. Accordingly, OPP Units, initially, will not have full
      parity, on a per unit basis, with the common units of limited partner interests
      in the Operating Partnership with respect to liquidating distributions. Upon
      the
      occurrence of specified events, the OPP Units can over time achieve full parity
      with the common units of limited partner interests, at which time the OPP Units
      may be converted, subject to the satisfaction of applicable vesting conditions
      (time and/or performance based), on a one-for-one basis into common units of
      limited partner interests. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">With
      respect to voting rights, OPP Unit holders, together with the existing LTIP
      Unit
      holders, have the right to vote together with the holders of common units as
      a
      single class on all matters, and have a right to vote as a separate class if
      there is a material and adverse effect on the OPP Units and existing LTIP Units
      (except where the impact of a proposed action is equal, ratable and
      proportionate with the impact on common units). On matters where the LTIP Units
      have a separate class vote, the OPP Units vote together with the existing LTIP
      Units. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing summary is qualified in its entirety by reference to the copy of
      the
      form of award agreement under the Plan and the First Amendment to the Agreement
      of Limited Partnership of the Operating Partnership, which are incorporated
      herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furthermore,
      on March 14, 2006, the Company entered into an Employment Agreement with Richard
      J. McCready, the Company&#8217;s Executive Vice President, General Counsel &amp;
Secretary (the &#8220;Employment Agreement&#8221;). The Employment Agreement </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">has
      an
      initial term of three years. Following the initial term, the Employment
      Agreement automatically will extend on an annual basis for one additional year,
      unless notice not to renew the Employment Agreement is given 90 days prior
      to
      the expiration of its term. Mr. McCready will receive an initial annual base
      salary of $150,000 per annum. In subsequent years during the term, the base
      salary under the Employment Agreement will be subject to annual review and
      adjustment from time to time by the Compensation Committee of the Board of
      Directors. The Employment Agreement also provides that Mr. McCready may be
      entitled to an annual cash bonus. The initial target amount of the annual cash
      bonus will be 100% of Mr. McCready&#8217;s base salary.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Employment Agreement provides that Mr. McCready will receive severance payments
      in the event of termination of his employment by the Company (other than a
      termination for "cause," as defined in the Employment Agreement) or by Mr.
      McCready with "good reason" (also as defined in the Employment Agreement).
      These
      severance payment includes continuation of annual base salary for two years
      following the date of termination of employment. In addition, Mr. McCready
      would
      receive a pro-rata bonus for the year in which such termination
      occurred.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      payments made under the Employment Agreement (or any other plans or agreements)
      are subject to excise tax under the provisions of Section 4999 of the Internal
      Revenue Code, the Employment Agreement provides that the Company will pay Mr.
      McCready an additional amount such that the amount retained by him would equal
      the net amount of payments which would have been received by him absent
      application of the excise tax.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Employment Agreement, Mr. McCready agreed that, during his employment
      with the Company and for a period of one year following the termination of
      his
      employment, he will not solicit, directly or indirectly, any of the Company&#8217;s
      employees, officers, consultants or joint venture partners to terminate their
      employment or other relationships with the Company. Mr. McCready also agreed
      that he would devote not less than a majority of his business time to the
      performance of his duties under the Employment Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Employment Agreement also provides that Mr. McCready may participate in the
      Company&#8217;s equity compensation plans, including the 2006 Outperformance Plan.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      9.01&#160;&#160;&#160;&#160;Financial Statements and Exhibits.
</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="bottom" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
            </td>
            <td valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td valign="bottom" width="62%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of NorthStar Realty Finance Corp. 2006 Outperformance Plan Award
                Agreement*</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="7%">&#160;</td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="62%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 1 to Agreement of Limited Partnership of NorthStar Realty Finance
                Limited Partnership, dated as of March 14, 2006**</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="7%">&#160;</td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="62%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.3</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
                Employment Agreement between Richard J. McCready and NorthStar Realty
                Finance Corp., dated as of March 14,
                2006***</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
      by reference to exhibit 10.33 to the Company&#8217;s Annual Report on Form 10-K for
      the year ended December 31, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">**&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
      by reference to exhibit 10.34 to the Company&#8217;s Annual Report on Form 10-K for
      the year ended December 31, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">***&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
      by reference to exhibit 10.35 to the Company&#8217;s Annual Report on Form 10-K for
      the year ended December 31, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, as amended, the
      Registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%">&#160;</td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td width="50%">&#160;</td>
            <td width="1%">&#160;</td>
            <td width="49%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NorthStar
                Realty Finance Corp.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant)</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;March
              17, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Mark
              E.
              Chertok<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Mark
              E. Chertok</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Chief
              Financial Officer</font></td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      INDEX </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
              </td>
              <td valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td valign="bottom" width="62%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="right" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of NorthStar Realty Finance Corp. 2006 Outperformance Plan Award
                  Agreement*</font></div>
              </td>
            </tr>
            <tr>
              <td align="right" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="62%">&#160;</td>
            </tr>
            <tr>
              <td align="right" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                  No. 1 to Agreement of Limited Partnership of NorthStar Realty Finance
                  Limited Partnership, dated as of March 14, 2006**</font></div>
              </td>
            </tr>
            <tr>
              <td align="right" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="62%">&#160;</td>
            </tr>
            <tr>
              <td align="right" valign="top" width="7%">
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              </td>
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                  Employment Agreement between Richard J. McCready and NorthStar
                  Realty
                  Finance Corp., dated as of March 14,
                  2006***</font></div>
              </td>
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        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
        by reference to exhibit 10.33 to the Company&#8217;s Annual Report on Form 10-K for
        the year ended December 31, 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">**&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
        by reference to exhibit 10.34 to the Company&#8217;s Annual Report on Form 10-K for
        the year ended December 31, 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
        by reference to exhibit 10.35 to the Company&#8217;s Annual Report on Form 10-K for
        the year ended December 31, 2005.</font></div>
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{"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": "06696408"}, "mail-address": {"street1": "627 MADISON AVE 15TH FL", "city": "NEW YORK", "state": "NY", "zip": "10022"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      DC 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):
March
      17, 2006 (March 14, 2006)
NorthStar
      Realty Finance Corp.
(Exact
      name of registrant as specified in its charter)
Maryland
(State
                or other jurisdiction
of
                incorporation)
001-32330
(Commission
                File
Number)
11-3707493
(I.R.S. Employer
Identification
                No.)
527
                Madison Avenue, 16
th
Floor, New York
10022
(Address
                of principal executive offices)
(Zip
                Code)
(212)
      319-8801
(Registrant's
      telephone number, including area code)
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
      March
      14, 2006, the Compensation Committee of the Board of Directors (the
"Compensation Committee") of NorthStar Realty Finance Corp. (the "Company")
      approved the form of award agreement to be used to grant awards under the
      NorthStar Realty Finance Corp. 2006 Outperformance Plan, a long-term incentive
      compensation program that was approved by the Compensation Committee on January
      10, 2006 (the "2006 Outperformance Plan" or the "Plan").
Under
      the
      2006 Outperformance Plan, award recipients will share in a "performance pool" if
      the Company's total return to stockholders for the period from January 1,
      2006 (measured based on the average closing price of our common stock for the
      20
      trading days prior to January 1, 2006 through December 31, 2008 exceeds a
      cumulative total return to stockholders of 30%, including both share
      appreciation and dividends paid. The size of the pool will be 10% of the
      outperformance amount in excess of the 30% benchmark, subject to a maximum
      dilution cap equal to $40 million, exclusive of accrued dividends referred
      to
      below. Each employee's award under the 2006 Outperformance Plan will be
      designated as a specified percentage of the aggregate performance pool. Assuming
      the 30% benchmark is achieved, the performance pool that is established under
      the Plan will be allocated among the Company's employees in accordance with the
      percentage specified in each employee's award agreement.
Awards
      will be made under our 2004 Omnibus Incentive Plan (or successor plan) in the
      form of partnership units ("LTIP Units") of NorthStar Realty Finance Limited
      Partnership, a Delaware limited partnership (the "Operating Partnership"), that
      are ultimately exchangeable for shares of our common stock or cash, at our
      election. The Plan provides that if the performance pool is established, each
      award recipient will be entitled to the dividends that would have been paid
      by
      the Company had the LTIP Units (that were earned based on the size of the pool)
      been issued on the date the Plan was approved.  Those dividends will be
      paid by the issuance of additional LTIP Units.  Thereafter, dividends will
      be paid on the outstanding LTIP Units, whether or not vested. In the event
      the
      potential performance pool reaches the maximum dilution cap before December
      31,
      2008 and remains at that level or higher for 30 consecutive days, the
      performance period will end early and the pool will be formed on the last day
      of
      such 30 day period.
Although
      the amount of the awards earned under the Plan will be determined when the
      performance pool is established, not all of the LTIP Units earned pursuant
      to
      the awards vest at that time. Instead, 50% of the awards vest on December 31,
      2008 and 25% of the awards vest on each of the first two anniversaries
      thereafter based on continued employment. In the event of a change in control
      of
      the Company prior to the establishment of the pool, then (1) the performance
      period will be shortened to end on a date immediately prior to the public
      announcement of the change of control event, and (2) the total shareholder
      return benchmark will be adjusted on a pro rata basis for the shortened
      performance period.  A performance pool will be established as described
      above if the adjusted benchmark target is achieved and all of the LTIP Units
      earned pursuant to the awards will be fully vested.
If
      a
      change in control occurs after the performance period has ended, all unvested
      LTIP Units earned under the Plan will fully vest upon the change in
      control.
All
      determinations, interpretations and assumptions relating to the vesting and
      calculation of the performance awards will be made by the Compensation
      Committee.
On
      March
      14, 2006, the Company also amended the Agreement of Limited Partnership of
      the
      Operating Partnership in order to establish the terms of the LTIP Units under
      the Plan (referred to as "OPP Units"). The OPP Units are a class of limited
      partner interests structured to qualify as "profits interests" for federal
      income tax purposes. Accordingly, OPP Units, initially, will not have full
      parity, on a per unit basis, with the common units of limited partner interests
      in the Operating Partnership with respect to liquidating distributions. Upon
      the
      occurrence of specified events, the OPP Units can over time achieve full parity
      with the common units of limited partner interests, at which time the OPP Units
      may be converted, subject to the satisfaction of applicable vesting conditions
      (time and/or performance based), on a one-for-one basis into common units of
      limited partner interests.
With
      respect to voting rights, OPP Unit holders, together with the existing LTIP
      Unit
      holders, have the right to vote together with the holders of common units as
      a
      single class on all matters, and have a right to vote as a separate class if
      there is a material and adverse effect on the OPP Units and existing LTIP Units
      (except where the impact of a proposed action is equal, ratable and
      proportionate with the impact on common units). On matters where the LTIP Units
      have a separate class vote, the OPP Units vote together with the existing LTIP
      Units.
The
      foregoing summary is qualified in its entirety by reference to the copy of
      the
      form of award agreement under the Plan and the First Amendment to the Agreement
      of Limited Partnership of the Operating Partnership, which are incorporated
      herein by reference.
Furthermore,
      on March 14, 2006, the Company entered into an Employment Agreement with Richard
      J. McCready, the Company's Executive Vice President, General Counsel &
Secretary (the "Employment Agreement"). The Employment Agreement
has
      an
      initial term of three years. Following the initial term, the Employment
      Agreement automatically will extend on an annual basis for one additional year,
      unless notice not to renew the Employment Agreement is given 90 days prior
      to
      the expiration of its term. Mr. McCready will receive an initial annual base
      salary of $150,000 per annum. In subsequent years during the term, the base
      salary under the Employment Agreement will be subject to annual review and
      adjustment from time to time by the Compensation Committee of the Board of
      Directors. The Employment Agreement also provides that Mr. McCready may be
      entitled to an annual cash bonus. The initial target amount of the annual cash
      bonus will be 100% of Mr. McCready's base salary.
The
      Employment Agreement provides that Mr. McCready will receive severance payments
      in the event of termination of his employment by the Company (other than a
      termination for "cause," as defined in the Employment Agreement) or by Mr.
      McCready with "good reason" (also as defined in the Employment Agreement).
      These
      severance payment includes continuation of annual base salary for two years
      following the date of termination of employment. In addition, Mr. McCready
      would
      receive a pro-rata bonus for the year in which such termination
      occurred.
If
      payments made under the Employment Agreement (or any other plans or agreements)
      are subject to excise tax under the provisions of Section 4999 of the Internal
      Revenue Code, the Employment Agreement provides that the Company will pay Mr.
      McCready an additional amount such that the amount retained by him would equal
      the net amount of payments which would have been received by him absent
      application of the excise tax.
Pursuant
      to the Employment Agreement, Mr. McCready agreed that, during his employment
      with the Company and for a period of one year following the termination of
      his
      employment, he will not solicit, directly or indirectly, any of the Company's
      employees, officers, consultants or joint venture partners to terminate their
      employment or other relationships with the Company. Mr. McCready also agreed
      that he would devote not less than a majority of his business time to the
      performance of his duties under the Employment Agreement.
The
      Employment Agreement also provides that Mr. McCready may participate in the
      Company's equity compensation plans, including the 2006 Outperformance Plan.
ITEM
      9.01    Financial Statements and Exhibits.
(c)
Exhibits
Exhibit
Number
Description
99.1
Form
                of NorthStar Realty Finance Corp. 2006 Outperformance Plan Award
                Agreement*
99.2
Amendment
                No. 1 to Agreement of Limited Partnership of NorthStar Realty Finance
                Limited Partnership, dated as of March 14, 2006**
99.3
Executive
                Employment Agreement between Richard J. McCready and NorthStar Realty
                Finance Corp., dated as of March 14,
                2006***
*
Incorporated
      by reference to exhibit 10.33 to the Company's Annual Report on Form 10-K for
      the year ended December 31, 2005.
**
Incorporated
      by reference to exhibit 10.34 to the Company's Annual Report on Form 10-K for
      the year ended December 31, 2005.
***
Incorporated
      by reference to exhibit 10.35 to the Company's Annual Report on Form 10-K for
      the year ended December 31, 2005.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, as amended, the
      Registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.
NorthStar
                Realty Finance Corp.
(Registrant)
Date: March
              17, 2006
By:
/s/ Mark
              E.
              Chertok
Mark
              E. Chertok
Chief
              Financial Officer
EXHIBIT
      INDEX
Exhibit
Number
Description
99.1
Form
                  of NorthStar Realty Finance Corp. 2006 Outperformance Plan Award
                  Agreement*
99.2
Amendment
                  No. 1 to Agreement of Limited Partnership of NorthStar Realty Finance
                  Limited Partnership, dated as of March 14, 2006**
99.3
Executive
                  Employment Agreement between Richard J. McCready and NorthStar
                  Realty
                  Finance Corp., dated as of March 14,
                  2006***
*
Incorporated
        by reference to exhibit 10.33 to the Company's Annual Report on Form 10-K for
        the year ended December 31, 2005.
**
Incorporated
        by reference to exhibit 10.34 to the Company's Annual Report on Form 10-K for
        the year ended December 31, 2005.
***
Incorporated
        by reference to exhibit 10.35 to the Company's Annual Report on Form 10-K for
        the year ended December 31, 2005.