NorthStar expands healthcare portfolio with $1B deal

Real estate investment trust NorthStar Realty Finance Corp. will greatly expand its presence in the senior housing arena with the planned $1.05 billion acquisition of 43 primarily private-pay senior housing facilities and 37 skilled nursing facilities. With the transaction, NorthStar will have a healthcare real estate portfolio of more than 160 properties worth about $1.6 billion.  

Currently owned and managed by private investment management firm Formation Capital or its affiliates and global principal investment firm Safanad Ltd., the facilities involved in the deal are spread out among 14 states, although more than one-third of them are located in Florida. NorthStar is acquiring the portfolio in a joint venture with Formation.

"This transaction represents an initial step towards our goal of expanding NorthStar's healthcare portfolio into a preeminent healthcare real estate business,” says Jay Flaherty, who oversees NorthStar's healthcare real estate business. “We are enthusiastic that this will be the first of many compelling transactions that we can complete with our partners at Formation Capital."

In related news, NorthStar Healthcare Income has acquired a 100-unit assisted living and memory care facility in Cheektowaga, N.Y., for $12.5 million plus closing costs. The move is the company’s latest transaction with Peregrine Senior Living, an affiliate of which will continue to manage the facility. NorthStar Healthcare Income’s portfolio now has 11 investments worth a total of $167.1 million.

NorthStar Realty Securities is the broker-dealer affiliate of NorthStar Realty Finance Corp. and the dealer-manager for NorthStar Healthcare Income.

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