NorthStart Healthcare Income has completed a strategic joint-venture with senior housing owner and developer The Freshwater Group, for an initial investment of $86.6 million plus closing costs.
The joint venture currently spans three properties with plans to acquire and manage the growing portfolio over time. The first three properties include a 125-unit independent living facility located in Milford, Ohio, which was acquired for a total cost of $16.3 million; a contract to purchase a 184-unit independent and assisted living facility located in Denver, Colorado for $31.5 million; and a third property, currently undergoing due diligence, with a purchase price of $39.5 million
NorthStar, a public, non-traded real estate investment trust, owns 97% of the joint venture and an affiliate of Freshwater will manage the properties as well as any additional assets the joint venture acquires.
The REIT also announced its acquisition of a 56-unit memory care community in Smyrna, Georgia for $10.1 million; it will be operated by an affiliate of Peregrine Health Management Company.
“We are pleased with the closing of our strategic joint venture with Freshwater as well as the expansion of our existing relationship with Peregrine,” said Daniel Gilbert, NorthStar Healthcare CEO. “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.”
As of January 8, upon the announcement, NorthStar Healthcare had invested in seven assets with a total cost of $67 million, consisting of six equity investments totaling $55.7 million and one senior loan totaling $11.3 million.
Written by Elizabeth Ecker