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Non-Traded REIT Closes Mezzanine Loan on Skilled Nursing Facilities

NorthStar Healthcare Income, Inc. (NorthStar Healthcare), a non-traded REIT sponsored by NorthStar Asset Management Group, announced today that it has closed an investment on a $75 million mezzanine loan.

The loan was related to the $940 million financing of a portfolio that included 167 skilled nursing facilities. The portfolio is comprised of over 20,000 licensed beds in 19 states across the country. The properties are concentrated in Texas, North Carolina, Colorado and Maryland and are managed by affiliates of Sava Senior Care, which is the nation’s sixth largest operator of skilled nursing facilities.

The loan has interest at a floating rate of 10.27% over the one month London Interbank Offered Rate (LIBOR). It has an initial term of 24 months with three one-year extension options available.

With a focus on acquiring and managing debt and equity investments in healthcare real estate, NorthStar Healthcare’s portfolio consists of 14 investments with an aggregate total cost of $318.2 million.

As of July 2, 2014, it includes 11 equity investments with an aggregate total cost of $217.6 million, two senior loans with an aggregate principal amount of $25.9 million, and now a mezzanine loan with a principal amount of $75.0 million.