NorthStar Healthcare Income Inc., a publicly registered non-traded real estate investment trust, has sold 14 independent living, assisted living/memory, and continuing care retirement communities to subsidiaries of Welltower Inc. (NYSE: WELL), a traded REIT, for $580 million.
The 14-property seniors housing portfolio includes eight rental and six entrance fee communities in Bellevue, Washington; Dana Point, California; and Alexandria, Virginia.
According to a filing with the Securities and Exchange Commission, after repayment of mortgage notes, transaction and other costs, NorthStar Healthcare generated net proceeds of approximately $117 million.
NorthStar Healthcare Income was formed to acquire, originate and asset manage a portfolio of equity, debt and securities investments in healthcare real estate. The company launched in February 2013 and raised $1.7 billion, excluding $232.6 million through its distribution reinvestment plan. The REIT completed its follow-on offering in January 2016.
As of the second quarter of 2021, NorthStar Healthcare’s properties, joint venture investments and healthcare debt investments totaled approximately $3.2 billion and included 568 properties. The REIT’s assets totaled $1.87 billion as of the second quarter 2021, and its liabilities totaled $1.47 billion.
NorthStar Healthcare suspended monthly distribution payments to stockholders in February 2019. In April 2020, the board suspended all repurchases, citing the need to “preserve capital and liquidity.”