NEW YORK CITY—NorthStar Realty Finance Corp.and Griffin-American Healthcare REIT II havefinalized their $4-billion merger, a deal which GlobeSt.comfirst reported in August. For locally based NRF, the acquisitionbrings the company's owned real estate to approximately 80% oftotal assets, with $5.8 billion of that in thehealthcare sector.

“The completion of this acquisition creates a best-in-classhealthcare real estate portfolio with a high quality mix ofdiversified assets and stable, long-term cash flows,” saysJames Flaherty, who oversees NRF's healthcarebusiness. “Since we announced our agreement to acquire thisportfolio, we have continued to see meaningful cap rate compressionin the healthcare real estate sector, particularly for qualityassets such as these.”

For Irvine, CA-based Griffin-American, the cash-and-stock saleto NRF culminates an exit strategy that the company's leadershiphad in mind from its first acquisition in 2010, says JeffHanson. “We executed our strategy in a disciplined manner,building a premium international portfolio of diversifiedhealthcare assets and delivering an attractive total return to ourinvestors,” says Hanson, former chairman and CEO ofGriffin-American Healthcare REIT II, and its largest stockholder.“We are very pleased with the results.”