New Senior Adds 10-State Portfolio

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.