NorthStar Buys Healthcare Portfolio in $1B Deal

NEW YORK CITY—NorthStar Realty Finance has agreed to acquire 43 private-pay senior housing facilities and 37 skilled nursing assets in a deal valued at $1.05 billion. The sellers are private investment firm Formation Capital and Safanad Ltd., a global investment firm. The transaction will give NorthStar a major boost in this asset class, bringing its healthcare portfolio to more than 160 properties worth more than $1.6 billion.

NorthStar is essentially buying out Safanad’s stake in a partnership with Formation Capital. NorthStar is contributing approximately 92% of the $430 million of equity to purchase the portfolio. The joint venture between NorthStar and Safanad will assume in-place financing for the remaining eight percent.