NEW YORK CITY—NorthStar Healthcare Income Inc. has acquired an 11-state senior care portfolio from a fund sponsored by Bahrain-based Arcapita. The REIT paid $639.3 million for the 15-property portfolio, according to a NorthStar Healthcare filing with the SEC. Arcapita announced the sale Wednesday; it follows NorthStar Healthcare's joint venture on an even larger seniors portfolio late last month.

The portfolio acquired from subsidiaries of Fountains Senior Living Holdings LLC, an investment vehicle sponsored by Arcapita, includes nine rental continuing care retirement communities and six entrance-fee CCRCs, along with 23 contracted life estate units. Totaling 3,637 units, the portfolio is concentrated in New York State, California, Florida and Michigan.

NorthStar Healthcare's SEC filing says the entrance-fee CCRCs were purchased by wholly-owned subsidiaries and subsequently leased to affiliates of the Freshwater Group Inc., pursuant to a master net lease. The portfolio is managed by Watermark Retirement Communities Inc., according to Arcapita. In connection with the acquisition, NorthStar Healthcare secured approximately $410 million in financing through Freddie Mac's Multifamily-Seniors Housing Loan Program.

Although the sale to NorthStar Healthcare represents Arcapita's fifth successful exit in senior living, the alternative investment manager is eying further opportunities in the sector. “Over the past seven years, senior housing in the United States has outperformed other property types,” says Arcapita CIO Martin Tan. “Demand continues to be driven by a number of factors, including an aging baby boomer population, an increasing recognition of the value provided by premium communities and the broader housing market recovery.” He adds that the portfolio's NOI grew 41% from 2010 to 2014 under Arcapita's ownership.

Two weeks ago, NorthStar Healthcare JVed with NorthStar Realty Finance Corp. on an $875-million portfolio of independent living facilities from affiliates of Harvest Facility Holdings LP. NorthStar Healthcare acquired a 40% interest in the portfolio, with NorthStar Realty acquiring the remainder. The JV obtained $648 million in fixed-rate financing through Fannie Mae's Multifamily DUS Loan Program.

The 100% private-pay portfolio is comprised of 32 communities with 3,983 units across 12 states; it is concentrated in California, Texas and Washington State. It was 93% occupied as of March 31, and will continue to be managed by Holiday Retirement Communities.

“The experience of our healthcare team and its extensive relationships within the healthcare industry have and will continue to play a significant role in our ability to source and execute on institutional-quality healthcare portfolios,” Ronald J. Jeanneault, NorthStar Healthcare's president and CEO, said last month when the JV was announced. “This acquisition allows NorthStar Healthcare to deploy significant capital into a high-quality private pay portfolio of independent living communities in line with our investment objectives.” Both NorthStar Healthcare and NorthStar Realty are externally managed by NorthStar Asset Management Group Inc.