Investor Relations

Investor
Relations

NorthStar Healthcare Recently Completes Over $100 Million of Investments

New York, NY (February 18, 2014) – NorthStar Healthcare Income, Inc. (NorthStar Healthcare) announced today that it completed over $100 million of investments, including $86.6 million of acquisitions through its recently formed strategic joint venture with The Freshwater Group, Inc. (Freshwater), a leading developer, owner, and operator of senior living facilities. The joint venture initially identified and subsequently closed three senior living facilities, including the previously announced acquisition of a 125-unit independent living facility located in Milford, Ohio. In the last 30 days, the joint venture also completed the acquisition of a 183-unit independent and assisted living facility located in Denver, Colorado and a 202-unit independent living facility located in Frisco, Texas. An affiliate of Freshwater will manage these properties as well as any additional assets purchased by the joint venture. The acquisitions were financed with three separate third-party loans totaling $52.0 million.

NorthStar Healthcare owns a 97% interest in the joint venture, which plans to invest an additional $16.1 million for accretive expansion and capital improvement projects at the properties. NorthStar Healthcare and Freshwater will continue to explore additional opportunities to grow the joint venture’s portfolio.

NorthStar Healthcare also announced the origination of a $14.6 million senior mortgage loan secured by two senior living facilities: a 70-bed assisted living and skilled nursing facility located in Dallastown, Pennsylvania and a 66-bed skilled nursing facility located in Newark, Delaware. The senior loan, which closed in January, has a minimum interest rate of 8.25% and a 36-month term, with two one-year extension options available to the borrower, subject to certain performance tests.

Daniel R. Gilbert, executive chairman of NorthStar Healthcare, 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 continued, “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.”

As of February 18, 2014, NorthStar Healthcare’s portfolio consists of ten investments with a total cost of $153.2 million, including eight equity investments totaling $127.3 million and two senior loans with a combined principal balance of $25.9 million.

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