NorthStar Healthcare Income, Inc., a non-traded REIT sponsored by NorthStar Asset Management (NYSE: NSAM), acquired a $639.3 million portfolio of continuing care retirement communities from subsidiaries of Fountains Senior Living Holdings, LLC.
The portfolio will continue to be operated by Watermark Retirement Communities, Inc., a national operator of senior living facilities and affiliate of The Freshwater Group, Inc.
In connection with the acquisition, NorthStar Healthcare obtained fixed rate financing through Freddie Mac’s Multifamily-Seniors Housing Loan Program, with an aggregate principal amount of approximately $410 million and a fixed interest rate of 3.92 percent and a term of seven years.
The portfolio consists of 15 continuing care retirement communities and 23 contracted life estate units, with approximately 3,637 units located in 11 states, with the largest concentrations in New York, California, Florida and Michigan. The six entrance fee properties were acquired directly by NorthStar Healthcare and leased to affiliates of Freshwater pursuant to a master net lease.