NEW YORK CITY—New Senior Investment Group Inc., which completed its spinoff from Newcastle Investment Corp. last month, has made its first portfolio acquisition as a standalone REIT. SNR said Monday it had agreed to acquire a 17-property portfolio of private pay, independent living seniors housing facilities across 10 states from affiliates of Hawthorn Retirement Group LLC for approximately $435 million.

The acquisition will expand SNR's portfolio by 2,082 beds and increase its share of NOI from private-pay/independent living to 93% from the 91% share the segment had as of the end of the third quarter. The portfolio will add three states to its current footprint: Massachusetts, Nebraska and Washington. SNT expects to fund the acquisition with a combination of $135 million of existing cash and $300 million in debt and to close on it by the end of Q1 2015.

“As the only pure play senior housing REIT, this transaction is consistent with our strategy of focusing on owning private pay senior housing assets, and we are excited to add 17 high-quality independent living properties to our portfolio,” says Susan Givens, SNR's CEO. The portfolio is currently operated by Holiday Retirement, and SNR expects Holiday to continue operating it under a new property management agreement.

In an investor presentation Monday, SNR noted that the portfolio is comprised newer properties, with an average of six years and occupancy of 92%. It includes three properties apiece in Florida, North Carolina and California, two in Washington State and one each in Massachusetts, New Hampshire, Ohio, Nebraska, Texas and Utah.  

Following the Hawthorn Retirement acquisition, SNR will count 117 properties across 30 states in its portfolio, 48% of which are managed and the remainder triple net-leased. The acquisition will give SNR an enterprise value of $2.2 billion and a market cap of $1.1 billion.

Separately from the Hawthorn acquisition, SNR has acquired a 66-bed memory care community located in Illinois for $15.7 million at an NOI yield of 7.8%. Built in 2012, the community will continue to be managed by JEA Senior Living, a leading seniors housing operator with over 25 years of operating experience and a current portfolio of 46 properties in 16 states.