NorthStar Healthcare Closes Strategic Joint Venture; Completes Multiple Acquisitions
New York, NY (January 9, 2014) – NorthStar Healthcare Income, Inc. (NorthStar Healthcare) announced the closing of a strategic joint venture with The Freshwater Group (Freshwater), a leading developer, owner, and operator of senior living facilities. The joint venture plans to acquire and manage a portfolio of senior housing assets located throughout the United States and has initially identified three properties with a combined purchase price of $86.6 million, plus closing costs. NorthStar Healthcare owns a 97% interest in the joint venture.
The joint venture’s initial investment consists of a 125-unit independent living facility located in Milford, Ohio, which was acquired for a total cost of $16.3 million. The joint venture is also under contract to purchase a 184-unit independent and assisted living facility located in Denver, Colorado for $31.5 million, plus closing costs, which is expected to close in January 2014. A third property with a purchase price of $39.5 million has been identified by the joint venture and is currently under due diligence review. An affiliate of Freshwater will manage these properties as well as any additional assets purchased by the joint venture.
NorthStar Healthcare also announced the $10.1 million acquisition of a 56-unit memory care facility located in Smyrna, Georgia, which will be operated by an affiliate of Peregrine Health Management Company (Peregrine). Inclusive of this asset, Peregrine operates three of NorthStar Healthcare’s senior living facilities totaling 118 units with a combined cost of $24.3 million and the companies continue to explore additional opportunities.
Daniel R. Gilbert, chief executive officer of NorthStar Healthcare commented, “We are pleased with the closing of our strategic joint venture with Freshwater as well as the expansion of our existing relationship with Peregrine. We intend to continue to build on these partnerships with experienced managers and operators of senior housing facilities, which provide us with the ability to execute deals efficiently and drive value at our properties.” Mr. Gilbert continued, “We believe these recent closings demonstrate our ability to acquire high-quality senior housing assets in line with our business plan and reflect the momentum we are gaining in the market.”
As of January 8, 2014, NorthStar Healthcare has invested in seven assets with a total cost of $67.0 million, consisting of six equity investments totaling $55.7 million and one senior loan totaling $11.3 million.