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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: 18pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</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: 18pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</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>Washington,
      DC 20549 </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></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: 18pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></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>CURRENT
      REPORT </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></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>Pursuant
      to Section&#160;13 or 15(d) of the Securities Exchange Act of 1934
</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></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">Date
      of
      Report (Date of earliest event reported): </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>March
      23, 2006 (March 17, 2006)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></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: 20pt; FONT-FAMILY: Times New Roman"><strong>NorthStar
      Realty Finance Corp.</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">(Exact
      name of registrant as specified in its charter) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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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: 10pt; FONT-FAMILY: Times New Roman"><strong>Maryland</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">(State
                or other jurisdiction</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">of
                incorporation)</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>
            </td>
            <td valign="top" width="32%">
              <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>001-32330</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">(Commission
                File</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">Number)</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>
            </td>
            <td valign="top" width="32%">
              <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>11-3707493</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">(I.R.S.&#160;Employer</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">Identification
                No.)</font></div>
            </td>
          </tr>

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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="bottom" width="49%">
              <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>527
                Madison Avenue, 16</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><strong>th</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
                Floor, New York</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="bottom" width="49%">
              <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>10022</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="49%">
              <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">(Address
                of principal executive offices)</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="bottom" width="49%">
              <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">(Zip
                Code)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></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>(212)
      319-8801</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">(Registrant's
      telephone number, including area code) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></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>N/A</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">(Former
      name or former address, if changed since last report.) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></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">Check
      the
      appropriate box below if the Form&#160;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></div>
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          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                communications pursuant to Rule&#160;425 under the Securities Act (17 CFR
                230.425) </font></div>
            </td>
          </tr>

      </table>
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            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                material pursuant to Rule&#160;14a-12 under the Exchange Act (17 CFR
                240.14a-12) </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

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            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule&#160;14d-2(b) under the Exchange Act (17
                CFR 240.14d-2(b)) </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule&#160;13e-4(c) under the Exchange Act (17
                CFR 240.13e-4(c)) </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
                2.03</strong></font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Creation
                of a Direct Financial Obligation or an Obligation Under an Off-Balance
                Sheet Arrangement of a
                Registrant.</strong></font></div>
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          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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
      17, 2006, NorthStar Realty Finance Corp. (the &#8220;Company&#8221;) issued $450 million
      face amount of collateralized debt obligations in its sixth collateralized
      debt
      obligation financing (&#8220;CDO VI&#8221;) through two of its subsidiaries, N-Star REL CDO
      VI Ltd. (the &#8220;Issuer&#8221;) and N-Star REL CDO VI LLC (the &#8220;Co-Issuer&#8221;). Pursuant to
      an Indenture, dated as of March 17, 2006 (the &#8220;Indenture&#8221;), by and among the
      Issuer, the Co-Issuer, NS Advisors, LLC as advancing agent and Wells Fargo
      Bank,
      National Association, as trustee (the &#8220;Trustee&#8221;), the Issuer issued the
      following classes of rated notes: Class A-1 Notes, Class A-R Notes (together
      with the Class A-1 Notes, the &#8220;Class A Senior Notes&#8221;), Class A-2 Notes (together
      with the Class A Senior Notes, the &#8220;Class A Notes&#8221;), Class B Notes, Class C
      Notes, Class D Notes, Class E Notes, Class F Notes, Class G Notes, Class H
      Notes, Class J Notes and Class K Notes (collectively, the &#8220;Rated Notes&#8221;) and the
      Income Notes (collectively, the &#8220;Notes&#8221;). The Rated Notes, other than the Class
      H Notes, Class J Notes and Class K Notes, constitute secured limited recourse
      debt obligations of the Issuer and Co-Issuer. $380 million face amount of the
      Notes were issued and sold in a private placement, including the Notes retained
      by the Company. The Class H Notes and Class J Notes constitute secured limited
      recourse debt obligations of the Issuer only. The Class K Notes and Income
      Notes
      constitute unsecured limited recourse debt obligations of the Issuer only.
      The
      Company retained the Class H Notes, Class J Notes, Class K Notes and Income
      Notes, which had an aggregate face amount of $101.7 million. The table below
      sets forth further information with respect to the structure of CDO
      VI:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="bottom" width="27%" 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">&#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">Class
                of Notes</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="20%" 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">Moody&#8217;s/
                S&amp;P/Fitch Ratings</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%" 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">Principal
                Amount (dollars in thousands)</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%" 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">Expected
                Maturity Date</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>1</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%" 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">Applicable
                Periodic Interest Rate</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>2</sup></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                A-1 Floating Rate Notes</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">Aaa</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AAA/AAA</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">
              <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">$174,800</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
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            <td align="left" valign="bottom" width="15%">&#160;</td>
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            <td width="2%">&#160;</td>
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            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
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                A-2 Floating Rate </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes</font></div>
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            <td valign="bottom" width="15%">
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            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
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            <td align="left" valign="bottom" width="27%">
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                B Floating Rate </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes</font></div>
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            <td width="2%">&#160;</td>
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            <td valign="bottom" width="15%">
              <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">2014</font></div>
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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: 10pt; FONT-FAMILY: Times New Roman">LIBOR
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            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
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            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                C Floating Rate Deferrable Interest Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">A1/A+/A+</font></div>
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            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
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            <td valign="bottom" width="15%">
              <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">LIBOR
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            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
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            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                D Floating Rate Deferrable Interest Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">A3/A-/A-</font></div>
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            <td align="left" valign="bottom" width="15%">
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            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
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            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">LIBOR
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          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
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          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                E Floating Rate Deferrable Interest Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">Baa1/BBB+/BBB+</font></div>
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            <td align="left" valign="bottom" width="15%">
              <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">$10,125</font></div>
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            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
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            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">LIBOR
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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: 10pt; FONT-FAMILY: Times New Roman">1.650%</font></div>
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            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                F Floating Rate Deferrable Interest Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">Baa2/BBB/BBB</font></div>
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            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">
              <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">$7,650</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
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            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">LIBOR
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          </tr>

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      <div id="PN" style="PAGE-BREAK-AFTER: always">
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
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          <tr>
            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                G Floating Rate Deferrable Interest Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
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            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">
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            <td valign="bottom" width="15%">
              <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">2014</font></div>
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            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">LIBOR
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          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="27%">
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                H Floating Rate Deferrable Interest Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4,5</sup></font></div>
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            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">Ba2/BB/BB</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">
              <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">$6,075</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">LIBOR
                +</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">4.250%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                J Floating Rate Deferrable Interest Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4,5</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">Ba3/BB/BB</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">
              <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">$18,000</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">LIBOR
                +</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">5.500%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                K Floating Rate Deferrable Interest Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4,5</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">B2/B/B</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">
              <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">$13,950</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">LIBOR
                +</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">8.000%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                Notes</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>4,5</sup></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="20%">
              <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">Not
                Rated</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="15%">
              <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">$63,675</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">2014</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td valign="bottom" width="15%">
              <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">N/A</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;

      <div>
        <hr style="COLOR: black" align="left" noshade size="1" width="15%">
      </div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
                  expected maturities. Contractual maturities are June 2041.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  rate per annum; expressed to include a spread above LIBOR with
                  respect to
                  each Class of floating rate notes; based on a year of 360 days
                  and actual
                  number of days elapsed in the case of the floating rate notes;
                  payable
                  quarterly (except with respect to the initial payment date of June
                  16,
                  2006) in arrears on each payment
                  date.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 27pt;">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font></div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  funded amount of the Class A-R Notes was $21,797,652 on March 17,
                  2006 and
                  may increase and decrease from time to
                  time.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">So
                  long as any Class of Notes that is senior remains outstanding,
                  any
                  interest on these Notes not paid when due will be deferred and
                  capitalized.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 27pt;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.</font></div>
              </td>
              <td align="left">
                <div align="left"><font size="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
                  offered.</font></font></div>
              </td>
            </tr>

        </table>
      </div>
    </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: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      total
      value of the underlying collateral portfolio is expected to be approximately
      $450 million and is currently&#160;comprised of approximately 40.8% first
      mortgage loans, approximately 21.0% subordinate commercial mortgage loan
      interests, approximately 24.1% mezzanine loans, approximately 5.8% preferred
      equity interests, and approximately 8.2% real estate CDO securities. Through
      March 17, 2006, the Issuer had acquired, or entered into agreements to acquire
      approximately 88.5% of the assets that will comprise the fully-invested
      portfolio. Pursuant to Asset Transfer Agreements, dated as of March 17, 2006,
      two indirect subsidiaries of the Company sold such assets to the Issuer (the
      &#8220;Transferred Assets&#8221;) and such subsidiaries agreed to repurchase the Transferred
      Assets from the Issuer (or provide a qualifying substitute asset) in the event
      of a breach of the representations and warranties made by each such subsidiary
      with respect to the Transferred Assets. The Company has agreed to so repurchase
      any Transferred Asset, or provide such a qualifying substitute asset, in the
      event either such subsidiary fails to do so. Prior to March 17, 2006, the
      Company had financed the Transferred Assets through borrowings under its amended
      and restated master repurchase agreement, dated as of July 13, 2005, with
      Wachovia Bank, National Association (as amended through February 28, 2006,
      the
&#8220;Master Repurchase Agreement&#8221;). The Company used a portion of the proceeds from
      the sale of the Transferred Assets to repay approximately $296.1 million of
      the
      amount outstanding under the Master Repurchase Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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
      Issuer entered into a Collateral Management Agreement with NS Advisors, LLC
      (the
&#8220;Collateral Manager&#8221;), an indirect subsidiary of the Company, pursuant to which
      the Collateral Manager has agreed to advise the Issuer on certain matters
      regarding the collateral interests and other eligible investments securing
      the
      Notes in exchange for a fee which is payable on a quarterly basis in accordance
      with the priority of payments set forth in the Indenture. The Collateral
      Manager&#8217;s aggregate fee is equal to 0.39875% per annum of the net outstanding
      portfolio balance (the sum of (i) the aggregate principal balance of the
      collateral interests, including any impaired interests or written down
      interests, (ii) cash and eligible investments held in certain accounts pledged
      as security for payment the Notes, and (iii) the undrawn amount of commitments
      relating to the Class A-R Notes). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">2</font></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">
        </div>
      </div>
    </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
      Rated
      Notes represent limited recourse debt obligations of the Issuers payable solely
      from the collateral interests and other assets pledged under the Indenture
      and
      owned by the Issuer. To the extent the collateral interests and other pledged
      assets are insufficient to make payments in respect of the Rated Notes, neither
      of the Issuers will have any obligation to pay any further amounts in respect
      of
      the Rated Notes.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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
      Rated
      Notes have an initial weighted average interest rate of approximately 0.53%
      plus
      three-month LIBOR. Interest payments on the Rated Notes and distributions on
      the
      Income Notes are payable beginning on June 16, 2006, and, thereafter, quarterly
      on each September 16, December 16, March 16 and June 16, to and including June
      16, 2041, the stated maturity date of the Notes. As advancing agent under the
      Indenture, the Collateral Manager may be required to advance interest payments
      due on the Class A Notes and Class B Notes on the terms and subject to the
      conditions set forth in the Indenture. As consideration for its obligation
      to
      advance interest payments, the Collateral Manager is entitled to receive a
      fee,
      payable on a monthly basis in accordance with the priority of payments set
      forth
      in the Indenture, equal to 0.00125% per annum on the aggregate outstanding
      principal amount of the Class A Notes and Class B Notes. If the Collateral
      Manager does not make a required interest advance, Wells Fargo Bank, National
      Association as back up advancing agent will be required to make such interest
      advance. Interest advances will not be made with respect to any interest
      shortfall unless the Collateral Manager or Wells Fargo Bank, National
      Association, as applicable, has determined in its sole discretion, exercised
      in
      good faith and, in respect of the Collateral Manager, in accordance with a
      standard of care consistent with that exercised by a servicer of CMBS, that
      the
      amount so advanced, plus interest expected to accrue thereon, will be
      recoverable from subsequent payments or collections with respect to the
      collateral interests.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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">Each
      Class of Notes will mature at par on June 16, 2041, unless redeemed or repaid
      prior thereto. Principal payments on each Class of Notes will be paid at the
      stated maturity in accordance with the priority of payments set forth in the
      Indenture. However, it is anticipated that the Rated Notes will be paid well
      in
      advance of the stated maturity date in accordance with the priority of payments
      in the Indenture. The weighted average lives of the Rated Notes are currently
      expected to be approximately 7 years. The calculation of the weighted average
      lives of the Rated Notes assumes certain collateral characteristics and that
      there are no prepayments, defaults or delinquencies on the collateral interests.
      There is no assurance that such assumptions will be met.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">3</font></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">
        </div>
      </div>
    </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
      Notes
      may be redeemed automatically via an auction call redemption if the Notes have
      not been redeemed in full on or after June 16, 2018, and if a successful auction
      of the collateral interests is completed in accordance with the terms of the
      Indenture (which requires, among other things, that the cash purchase price
      for
      such collateral interests, together with the balance of eligible investments
      and
      cash held by Issuer, is at least equal to the amount necessary to redeem the
      Notes and to pay certain other required amounts under the priority of payments
      set forth in the Indenture and any outstanding interest advances).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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">Subject
      to certain conditions described in the Indenture, on June 16, 2008 and on any
      interest payment date thereafter, the Issuer may redeem the Rated Notes and
      the
      Income Notes at the direction of holders of not less than 66 2/3% of the
      aggregate outstanding principal amount of the Income Notes. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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
      Rated
      Notes are also subject to a mandatory redemption on any interest payment date
      on
      which certain coverage tests set forth in the Indenture are not satisfied.
      Any
      mandatory redemption of the Rated Notes is to be paid for from interest and
      principal proceeds of the collateral interests in accordance with the priority
      of payments set forth in the Indenture, until the applicable coverage tests
      are
      satisfied. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></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">If
      certain events occur which would make the Issuer subject to paying U.S. income
      taxes or would make certain payments to or from the Issuer subject to
      withholding tax, then the holders of not less than 66 2/3% of the aggregate
      outstanding principal amount of the Income Notes may require that the Issuer
      prepay all of the Rated Notes.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      redemption price for each Class of Notes is generally the aggregate outstanding
      principal amount of such Class, plus accrued and unpaid interest (including
      any
      unreimbursed interest advances and, with respect to the Class A-R Notes, any
      accrued and unpaid increased costs and commitment fees). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      of Rated Notes may be amortized by the Issuer if, during the reinvestment
      period, the Collateral Manager is unable to identify for purchase appropriate
      collateral interests that satisfy the reinvestment criteria and other
      requirements under the Indenture, and the Collateral Manager notifies the
      Trustee and the each rating agency of such election and the identity and
      principal amount of each Class of Rated Notes to be amortized.</font></div>
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      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>
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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">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>
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                March 23, 2006</font></div>
            </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/
              Mark
              E. Chertok<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></font></td>
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              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Mark
              E. Chertok</font></td>
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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": "06706416"}, "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
      23, 2006 (March 17, 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
                2.03
Creation
                of a Direct Financial Obligation or an Obligation Under an Off-Balance
                Sheet Arrangement of a
                Registrant.
On
      March
      17, 2006, NorthStar Realty Finance Corp. (the "Company") issued $450 million
      face amount of collateralized debt obligations in its sixth collateralized
      debt
      obligation financing ("CDO VI") through two of its subsidiaries, N-Star REL CDO
      VI Ltd. (the "Issuer") and N-Star REL CDO VI LLC (the "Co-Issuer"). Pursuant to
      an Indenture, dated as of March 17, 2006 (the "Indenture"), by and among the
      Issuer, the Co-Issuer, NS Advisors, LLC as advancing agent and Wells Fargo
      Bank,
      National Association, as trustee (the "Trustee"), the Issuer issued the
      following classes of rated notes: Class A-1 Notes, Class A-R Notes (together
      with the Class A-1 Notes, the "Class A Senior Notes"), Class A-2 Notes (together
      with the Class A Senior Notes, the "Class A Notes"), Class B Notes, Class C
      Notes, Class D Notes, Class E Notes, Class F Notes, Class G Notes, Class H
      Notes, Class J Notes and Class K Notes (collectively, the "Rated Notes") and the
      Income Notes (collectively, the "Notes"). The Rated Notes, other than the Class
      H Notes, Class J Notes and Class K Notes, constitute secured limited recourse
      debt obligations of the Issuer and Co-Issuer. $380 million face amount of the
      Notes were issued and sold in a private placement, including the Notes retained
      by the Company. The Class H Notes and Class J Notes constitute secured limited
      recourse debt obligations of the Issuer only. The Class K Notes and Income
      Notes
      constitute unsecured limited recourse debt obligations of the Issuer only.
      The
      Company retained the Class H Notes, Class J Notes, Class K Notes and Income
      Notes, which had an aggregate face amount of $101.7 million. The table below
      sets forth further information with respect to the structure of CDO
      VI:
Class
                of Notes
Moody's/
                S&P/Fitch Ratings
Principal
                Amount (dollars in thousands)
Expected
                Maturity Date
1
Applicable
                Periodic Interest Rate
2
Class
                A-1 Floating Rate Notes
Aaa
/
AAA/AAA
$174,800
2014
LIBOR
                +
0.330%
Class
                A-R Revolving Floating Rate Notes
3
Aaa/AAA/AAA
$70,000
2014
LIBOR
                +
0.340%
Class
                A-2 Floating Rate
Notes
Aaa/AAA/AAA
$27,225
2014
LIBOR
                +
0.380%
Class
                B Floating Rate
Notes
Aa2/AA/AA
$21,825
2014
LIBOR
                +
0.440%
Class
                C Floating Rate Deferrable Interest Notes
4
A1/A+/A+
$12,825
2014
LIBOR
                +
0.740%
Class
                D Floating Rate Deferrable Interest Notes
4
A3/A-/A-
$13,950
2014
LIBOR
                +
0.940%
Class
                E Floating Rate Deferrable Interest Notes
4
Baa1/BBB+/BBB+
$10,125
2014
LIBOR
                +
1.650%
Class
                F Floating Rate Deferrable Interest Notes
4
Baa2/BBB/BBB
$7,650
2014
LIBOR
                +
1.850%
Class
                G Floating Rate Deferrable Interest Notes
4
Baa3/BBB-/BBB-
$9,900
2014
LIBOR
                + 3.000%
Class
                H Floating Rate Deferrable Interest Notes
4,5
Ba2/BB/BB
$6,075
2014
LIBOR
                +
4.250%
Class
                J Floating Rate Deferrable Interest Notes
4,5
Ba3/BB/BB
$18,000
2014
LIBOR
                +
5.500%
Class
                K Floating Rate Deferrable Interest Notes
4,5
B2/B/B
$13,950
2014
LIBOR
                +
8.000%
Income
                Notes
4,5
Not
                Rated
$63,675
2014
N/A
1.
Reflects
                  expected maturities. Contractual maturities are June 2041.
2.
Interest
                  rate per annum; expressed to include a spread above LIBOR with
                  respect to
                  each Class of floating rate notes; based on a year of 360 days
                  and actual
                  number of days elapsed in the case of the floating rate notes;
                  payable
                  quarterly (except with respect to the initial payment date of June
                  16,
                  2006) in arrears on each payment
                  date.
3.
The
                  funded amount of the Class A-R Notes was $21,797,652 on March 17,
                  2006 and
                  may increase and decrease from time to
                  time.
4.
So
                  long as any Class of Notes that is senior remains outstanding,
                  any
                  interest on these Notes not paid when due will be deferred and
                  capitalized.
5.
Not
                  offered.
The
      total
      value of the underlying collateral portfolio is expected to be approximately
      $450 million and is currently comprised of approximately 40.8% first
      mortgage loans, approximately 21.0% subordinate commercial mortgage loan
      interests, approximately 24.1% mezzanine loans, approximately 5.8% preferred
      equity interests, and approximately 8.2% real estate CDO securities. Through
      March 17, 2006, the Issuer had acquired, or entered into agreements to acquire
      approximately 88.5% of the assets that will comprise the fully-invested
      portfolio. Pursuant to Asset Transfer Agreements, dated as of March 17, 2006,
      two indirect subsidiaries of the Company sold such assets to the Issuer (the
      "Transferred Assets") and such subsidiaries agreed to repurchase the Transferred
      Assets from the Issuer (or provide a qualifying substitute asset) in the event
      of a breach of the representations and warranties made by each such subsidiary
      with respect to the Transferred Assets. The Company has agreed to so repurchase
      any Transferred Asset, or provide such a qualifying substitute asset, in the
      event either such subsidiary fails to do so. Prior to March 17, 2006, the
      Company had financed the Transferred Assets through borrowings under its amended
      and restated master repurchase agreement, dated as of July 13, 2005, with
      Wachovia Bank, National Association (as amended through February 28, 2006,
      the
"Master Repurchase Agreement"). The Company used a portion of the proceeds from
      the sale of the Transferred Assets to repay approximately $296.1 million of
      the
      amount outstanding under the Master Repurchase Agreement.
The
      Issuer entered into a Collateral Management Agreement with NS Advisors, LLC
      (the
"Collateral Manager"), an indirect subsidiary of the Company, pursuant to which
      the Collateral Manager has agreed to advise the Issuer on certain matters
      regarding the collateral interests and other eligible investments securing
      the
      Notes in exchange for a fee which is payable on a quarterly basis in accordance
      with the priority of payments set forth in the Indenture. The Collateral
      Manager's aggregate fee is equal to 0.39875% per annum of the net outstanding
      portfolio balance (the sum of (i) the aggregate principal balance of the
      collateral interests, including any impaired interests or written down
      interests, (ii) cash and eligible investments held in certain accounts pledged
      as security for payment the Notes, and (iii) the undrawn amount of commitments
      relating to the Class A-R Notes).
2
The
      Rated
      Notes represent limited recourse debt obligations of the Issuers payable solely
      from the collateral interests and other assets pledged under the Indenture
      and
      owned by the Issuer. To the extent the collateral interests and other pledged
      assets are insufficient to make payments in respect of the Rated Notes, neither
      of the Issuers will have any obligation to pay any further amounts in respect
      of
      the Rated Notes.
The
      Rated
      Notes have an initial weighted average interest rate of approximately 0.53%
      plus
      three-month LIBOR. Interest payments on the Rated Notes and distributions on
      the
      Income Notes are payable beginning on June 16, 2006, and, thereafter, quarterly
      on each September 16, December 16, March 16 and June 16, to and including June
      16, 2041, the stated maturity date of the Notes. As advancing agent under the
      Indenture, the Collateral Manager may be required to advance interest payments
      due on the Class A Notes and Class B Notes on the terms and subject to the
      conditions set forth in the Indenture. As consideration for its obligation
      to
      advance interest payments, the Collateral Manager is entitled to receive a
      fee,
      payable on a monthly basis in accordance with the priority of payments set
      forth
      in the Indenture, equal to 0.00125% per annum on the aggregate outstanding
      principal amount of the Class A Notes and Class B Notes. If the Collateral
      Manager does not make a required interest advance, Wells Fargo Bank, National
      Association as back up advancing agent will be required to make such interest
      advance. Interest advances will not be made with respect to any interest
      shortfall unless the Collateral Manager or Wells Fargo Bank, National
      Association, as applicable, has determined in its sole discretion, exercised
      in
      good faith and, in respect of the Collateral Manager, in accordance with a
      standard of care consistent with that exercised by a servicer of CMBS, that
      the
      amount so advanced, plus interest expected to accrue thereon, will be
      recoverable from subsequent payments or collections with respect to the
      collateral interests.
Each
      Class of Notes will mature at par on June 16, 2041, unless redeemed or repaid
      prior thereto. Principal payments on each Class of Notes will be paid at the
      stated maturity in accordance with the priority of payments set forth in the
      Indenture. However, it is anticipated that the Rated Notes will be paid well
      in
      advance of the stated maturity date in accordance with the priority of payments
      in the Indenture. The weighted average lives of the Rated Notes are currently
      expected to be approximately 7 years. The calculation of the weighted average
      lives of the Rated Notes assumes certain collateral characteristics and that
      there are no prepayments, defaults or delinquencies on the collateral interests.
      There is no assurance that such assumptions will be met.
3
The
      Notes
      may be redeemed automatically via an auction call redemption if the Notes have
      not been redeemed in full on or after June 16, 2018, and if a successful auction
      of the collateral interests is completed in accordance with the terms of the
      Indenture (which requires, among other things, that the cash purchase price
      for
      such collateral interests, together with the balance of eligible investments
      and
      cash held by Issuer, is at least equal to the amount necessary to redeem the
      Notes and to pay certain other required amounts under the priority of payments
      set forth in the Indenture and any outstanding interest advances).
Subject
      to certain conditions described in the Indenture, on June 16, 2008 and on any
      interest payment date thereafter, the Issuer may redeem the Rated Notes and
      the
      Income Notes at the direction of holders of not less than 66 2/3% of the
      aggregate outstanding principal amount of the Income Notes.
The
      Rated
      Notes are also subject to a mandatory redemption on any interest payment date
      on
      which certain coverage tests set forth in the Indenture are not satisfied.
      Any
      mandatory redemption of the Rated Notes is to be paid for from interest and
      principal proceeds of the collateral interests in accordance with the priority
      of payments set forth in the Indenture, until the applicable coverage tests
      are
      satisfied.
If
      certain events occur which would make the Issuer subject to paying U.S. income
      taxes or would make certain payments to or from the Issuer subject to
      withholding tax, then the holders of not less than 66 2/3% of the aggregate
      outstanding principal amount of the Income Notes may require that the Issuer
      prepay all of the Rated Notes.
The
      redemption price for each Class of Notes is generally the aggregate outstanding
      principal amount of such Class, plus accrued and unpaid interest (including
      any
      unreimbursed interest advances and, with respect to the Class A-R Notes, any
      accrued and unpaid increased costs and commitment fees).
4
A
      Class
      of Rated Notes may be amortized by the Issuer if, during the reinvestment
      period, the Collateral Manager is unable to identify for purchase appropriate
      collateral interests that satisfy the reinvestment criteria and other
      requirements under the Indenture, and the Collateral Manager notifies the
      Trustee and the each rating agency of such election and the identity and
      principal amount of each Class of Rated Notes to be amortized.
5
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 23, 2006
By:
/s/
              Mark
              E. Chertok
Mark
              E. Chertok
Chief
                Financial Officer
6