NorthStar Acquires Four Senior Housing Properties for $30 Million

NorthStar Healthcare Income, Inc. announced Tuesday that it has completed the acquisition of four senior housing properties for a total purchase price of $29.7 million.

The acquired properties include a 70-unit assisted living and memory care community located in Leawood, Kansas and a 48-unit assisted living and memory care facility in Spring Hill, KS for a total cost of $15.6 million. Each facility is operated by an affiliate of Advantage Health Group. 

NorthStar also acquired two properties operated by an affiliate of Peregrine Health Management Company.


The first is a 48-unit memory care facility located in Clinton, Connecticut for $11 million. The second is a 14-unit assisted living facility in Skaneateles, New York for a cost of $3.1 million.

NorthStar is a public, non-traded corporation that intends to qualify as a real estate investment trust, with these recently announced acquisitions strengthening the company’s presence in the senior living market. 

“We are pleased with the growth of NorthStar Healthcare’s portfolio and our ability to efficiently invest capital,” said NorthStar CEO Daniel R. Gilbert. “We are committed to acquiring quality senior housing facilities and partnering with experienced operators, and these acquisitions demonstrate our strong presence in the senior housing market.”


Tuesday’s announcement is the latest from NorthStar Healthcare Income’s sponsor, NorthStar Realty Finance Corp. (NYSE: NRF), on the acquisition front. 

In June, NRF acquired an 11-property assisted living portfolio in Minnesota for $51 million at a 9.5% cap rate.

As of November 12, 2013, NorthStar has invested in assets totaling $41 million, consisting of three equity investments totaling $29.7 million and one senior loan totaling $11.3 million.

Written by Jason Oliva

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