NEW YORK CITY—NorthStar Realty Finance Corp., which earlier this month completed the spinoff of its asset management business, reportedly is in exclusive talks to acquire Griffin-American Healthcare REIT II. A cash-and-stock deal would value the non-traded REIT at between $3.7 billion and $4 billion, the Financial Times reported late Tuesday afternoon. The Wall Street Journal cited a value of $3.5 billion to $3.7 billion Wednesday morning.
The FT and WSJ, as well as Bloomberg, quoted unnamed sources said to be familiar with the matter. A spokeswoman for Griffin Capital Corp., the REIT’s cosponsor, declined to comment, while GlobeSt.com’s calls to NRF were not returned by deadline early Wednesday afternoon.
The exclusivity period on the talks between NRF and Grffin-American reportedly ends this weekend, after which Griffin-American can pursue other offers. It follows negotiations this past May between Griffin-American and American Realty Capital Healthcare Trust, talks that fell apart when HCT was sold to rival healthcare REIT Ventas Inc. for $2.6 billion in early June.
An NRF deal for Healthcare REIT II would represent a big leap forward in a direction that NRF has already been pursuing this year. In January, GlobeSt.com reported that NRF entered into a long-term partnership with James J. Flaherty III, former CEO of HCP Inc., to build its healthcare real estate business. Two months later, the company agreed to acquire 43 private-pay senior housing facilities and 37 skilled nursing assets from Formation Capital and Safanad Ltd. for $1.05 billion.
Griffin-American Healthcare was founded in 2009 as Grubb & Ellis Healthcare REIT II Inc. With a bankruptcy filing and sale to BGC Capital Partners looming on the horizon, Grubb & Ellis transferred its nontraded REIT advisory and dealership business to a partnership including American Healthcare Investors and Griffin Capital.