New York-based property investment company NorthStar Realty Finance Corp. agreed to purchase dozens of senior housing and nursing home buildings across the country for $1.05 billion.
The firm is buying the properties from sellers Formation Capital and Safanad Ltd. NorthStar will chip in 92 percent of the $430 million in equity for the buy. NorthStar and Formation will jointly handle financing for the remainder of the purchase price.
The portfolio, which includes 43 private-pay senior housing buildings and 37 nursing homes, has a total estimated value of $1.05 billion, according to Bloomberg News.
Upon the completion of the deal, NorthStar’s health care real estate holdings will consist of 160 buildings worth $1.6 billion, the company told Bloomberg. NorthStar’s Jay Flaherty, who joined the firm two months ago after being fired as chef executive offer at HCP, is leading the company’s business expansion, Bloomberg reported.
“This transaction represents an initial step towards our goal of expanding NorthStar’s health care portfolio into a preeminent health care real estate business,” Flaherty said in a statement cited by Bloomberg. [Bloomberg] — Julie Strickland