NorthStar Healthcare Income, Inc., a non-traded organization that intends to qualify as a REIT, announced today that it has completed its acquisition of an assisted living and memory care facility. Located in Cheektowaga, New York, the 100-unit facility contains 112 beds and was purchased for $12.5 million, plus closing costs.
The two-story, 82,000 square foot building was constructed in 2004.
The facility is 100% leased to an affiliate of Peregrine Health Management Company and as of February 28, 2014 it was 99% occupied.
An existing operating lease contains built in rent escalations of at least 2.5% annually.
NorthStar Healthcare Income focuses on acquiring and managing debt and equity investments in healthcare real estate. Specifically, it invests in the needs-driven, mid-acuity senior housing sector, which includes assisted living, memory care, skilled nursing, and independent living facilities.
As of March 19, 2014, NorthStar Healthcare’s portfolio consisted of 11 investments worth $167.1 million.