NorthStar Healthcare Income, Inc. (NorthStar Healthcare), a public, non-traded corporation, announced that it has completed more than $100 million of investments. This includes three acquisitions with a total cost of $86.6 million from the Freshwater strategic joint venture the company completed in January 2014, which NorthStar Healthcare owns a 97% interest in. Most recently, the joint venture acquired a Frisco, TX independent living facility for $39.5 million.
NorthStar Healthcare also announced the origination of a senior mortgage loan, worth $14.6 million and secured by two senior living facilities, one a 70-bed assisted living and skilled nursing facility in Dallastown, Pennsylvania, and the other a 66-bed skilled nursing facility in Newark, Delaware. The loan has a minimum interest rate of 8.25% and a 36-month term.
The success of NorthStar Healthcare follows a number of changes the company made last month, including the appointment of James Flaherty as CEO and President.
Executive chairman of NorthStar Healthcare, Daniel R. Gilbert, commented, “We are pleased with the growth and quality of NorthStar Healthcare’s investment portfolio. As NorthStar Healthcare enters a new stage under the leadership of Jay Flaherty, we hope to build on this momentum, expand our existing relationships and develop new avenues for growth.”
Mr. Gilbert added, “We believe our recent investment activity highlights NorthStar Healthcare’s growing presence in the senior housing market, as well as our ability to source and execute transactions in line with our business plan.”
NorthStar Healthcare intends to qualify as a REIT. It focuses on acquiring a diversified portfolio of debt and equity investments in healthcare real estate. Primarily, it seeks mid-acuity senior housing properties such as assisted living, memory care, skilled nursing, and independent living facilities.
As of November 2013 the company raised total gross proceeds of $64.9 million. NorthStar Healthcare’s current portfolio consists of ten investments, 8 of which are equity investments and 2 of which are senior loans. Their combined cost is $153.2 million.