Public, non-traded real estate investment trust NorthStar Healthcare Income, Inc. (NorthStar Healthcare) announced today that through a joint venture (the JV) with NorthStar Realty Finance Corp. (NRF), it acquired an interest in a portfolio of independent living facilities valued at $875 million.
NorthStar Healthcare obtained a 40 percent interest while NRF acquired the balance.
“The experience of our healthcare team and its extensive relationships within the healthcare industry have and will continue to play a significant role in our ability to source and execute on institutional-quality healthcare portfolios,” commented Ronald J. Jeanneault, President and CEO of NorthStar Healthcare.
As of March 31, 2015, the portfolio’s units, which total 3,983 residences across 32 private-pay independent living communities, were 93 percent occupied. The communities are located throughout 12 states with California, Washington, and Texas having the largest concentration.
“This acquisition allows NorthStar Healthcare to deploy significant capital into a high-quality private pay portfolio of independent living communities in line with our investment objectives,” said Jeanneault.
The JV, in connection with the purchase, obtained a ten-year, fixed rate loan with an aggregate principal amount of $648 million. Provided through Fannie Mae’s Multifamily DUS Loan Program, the financing offers a fixed interest rate of 4.17 percent.
As of today, May 27, 2015, NorthStar Healthcare’s portfolio includes 17 equity investments and 4 debt investments with an aggregate cost of $1.3 billion and an aggregate principal amount of $145.9 million, respectively.