NorthStar Healthcare to Replace Winterfell Portfolio Manager with New Joint Venture

NorthStar Healthcare Income Inc., a publicly registered non-traded REIT, plans to replace the current manager of its 32-property Winterfell Portfolio with a newly formed joint venture named Solstice Senior Living LLC.

In a filing with the Securities and Exchange Commission, the REIT disclosed plans to transition management of 32 private pay independent living facilities from Holiday AL Management Sub LLC, an affiliate of Holiday Retirement, to Solstice Senior Living.

Solstice is a newly formed joint venture between the REIT and affiliates of Integral Senior Living LLC, a management company of senior independent living, assisted living and memory care properties. Integral Senior Living will own an 80 percent interest in the entity, and the REIT will own the remaining 20 percent. The transition is expected to conclude in early November.

Northstar Healthcare purchased the Winterfell Portfolio in May 2015 for $875 million in a joint venture with NorthStar Realty Finance Corp, where the REIT owned a 40 percent interest and NorthStar Realty owned 60 percent. In March 2016, NorthStar Healthcare purchased the 60 percent interest from NorthStar Realty for $537.8 million.

The Winterfell Portfolio is comprised of nearly 4,000 units and is located in 12 states, with the largest concentrations in California, Texas and Washington. As of July 31st, the overall resident occupancy was approximately 89 percent.

NorthStar Healthcare Income was formed to acquire, originate and asset manage a portfolio of equity, debt and securities investments in healthcare real estate. According to Summit Investment Research, the company’s portfolio includes 656 properties purchased for a combined $2.7 billion. The offering closed in December 2015 and raised $1.7 billion in investor equity since inception.

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