Annaly Capital Management Inc. (NYSE: NLY) agreed to pay about $720.8 million to own 90 percent of CreXus Investment Corp. (NYSE: CXS).

The deal follows a previously announced acquisition on Jan. 31 in which Annaly increased its stake in CreXus from 12.4 percent to 84.5 percent. Now, it is exercising an option to purchase additional shares, which will give it 90 percent of outstanding shares.

The transaction is expected to close May 23.

CreXus invests mainly in commercial mortgage loans and mortgage-backed securities.

New York-based Annaly, which invests in real estate, is making the deal as part of the company’s goal to invest directly in commercial real estate.

For more real estate coverage, see "Private Equity Perspective: Rising House Prices Lift All Funds?"

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