Polestar Capital Group Completes $9.4 Million Equity Raise and Secures $20 Million Revolving Credit Facility Commitment From iStar Financial

Press Release: Polestar Capital Group, LLC
June 6, 2001
NEW YORK, NY -- Polestar Capital Group, LLC yesterday announced that it has successfully raised $9.4 million in preferred equity pursuant to a private placement offering. Polestar is a specialty finance company that aims to establish itself as the leader in third-party tenant improvement financing for commercial office properties.

Polestar also announced that it has secured a $20 million revolving credit facility from iStar Financial Inc. iStar Financial (NYSE: SFI) is the leading publicly traded finance company focused on the commercial real estate industry.

Conrad P. Voldstad, Polestar Chairman and CEO explained, ``Our initial equity and the credit facility we have just closed provide us with both the working capital needed to pursue our business plan and sufficient funds to support our initial lending activities. We believe that our innovative and cost-efficient approach to financing commercial leasehold improvements will be attractive to the full spectrum of commercial tenants and major landlords alike.''

Polestar Capital Group, LLC officially began operations earlier this year and has assembled a team of experienced professionals that bring together expertise from their Wall Street, commercial real estate, corporate, and legal backgrounds. Targeting both commercial office tenants and landlords, Polestar will not only provide capital to the process of financing tenant installations, but intends to accomplish these financings through a proprietary technique that generates noteworthy tax, accounting treatment, and economic benefits. Once these tenant improvement loans are originated by Polestar, the Company intends to sell these loans as either single assets or as part of pooled securitizations.

iStar Financial Inc. is the leading publicly traded finance company focused on the commercial Real Estate industry. iStar Financial provides structured financing to private and corporate owners of real estate nationwide, including senior and junior mortgage debt, corporate mezzanine and subordinated capital, and corporate net lease financing. iStar Financial, which is taxed as a real estate investment trust, seeks to deliver superior risk adjusted returns on equity to shareholders by providing innovative and value-added financing solutions to its customers. Additional information on iStar Financial is available on the Company's website at http://www.istarfinancial.com.

     CONTACT -- Polestar Capital Group, LLC
     Winston G. van Buitenen, Managing Director, 212-888-7582

     CONTACT -- iStar Financial, Inc.
     Spencer B. Haber, Executive Vice President and CFO, 212-930-9400


SOURCE: Polestar Capital Group, LLC