NorthStar Healthcare Announces Initial Investment

              NorthStar Healthcare Announces Initial Investment

PR Newswire

NEW YORK, April 9, 2013

NEW YORK, April 9, 2013 /PRNewswire/ --NorthStar Healthcare Income, Inc.
(NorthStar Healthcare) announced today that it made its initial investment by
purchasing a $2.0 million pari passu participation interest in an $11.25
million senior loan from an affiliate of the sponsor, NorthStar Realty Finance
Corp. (NRF). The loan and participation both bear interest at 7.00% over the
one-month LIBOR index with a minimum interest rate of 8.0% per annum.

The sponsor recently originated the loan and sold the participation to
NorthStar Healthcare at its cost basis. NorthStar Healthcare will purchase
additional amounts of the loan, from time to time, as additional capital is
raised, increasing the size of the participation until NorthStar Healthcare
owns the entire loan.

The loan is secured by a 112-unit mixed independent living, assisted living
and memory care facility located in Madera, California. The property is
situated in the middle of a 40-acre upscale single family home and multi-use
area and is also located three-miles from the Madera Community Hospital. The
property is managed by an experienced operator who manages 47 properties, 33
of which are in California.

Daniel R. Gilbert, chief executive officer of NorthStar Healthcare remarked,
"We are very pleased to announce our initial investment in an asset that is
consistent with our targeted investment portfolio and our sponsor continues to
generate an attractive pipeline of additional investments that will allow us
to quickly invest the Company's capital as it is raised."

About NorthStar Healthcare Income, Inc. (NorthStar Healthcare)
NorthStar Healthcare is a public, non-traded real estate investment trust
(REIT) sponsored by NorthStar Realty Finance Corp. (NRF). The REIT was formed
to originate, acquire and asset manage a diversified portfolio of debt and
equity investments in the healthcare real estate sector with a focus on the
mid-acuity senior housing sector, which we define as assisted living, memory
care, skilled nursing and independent living facilities that have an emphasis
on private pay patients . For more information, visit
www.northstarreit.com/healthcare.

Certain items in this press release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
which can be identified by words like "anticipate," "believe," "plan," "hope,"
"goal," "expect," "future," "intend," "will," "may," "could" and "should" and
similar expressions. These statements are based on the Company's current
expectations and beliefs and are subject to a number of trends and
uncertainties that could cause actual results to differ materially from those
described in the forward looking statements; the Company can give no assurance
that its expectations will be attained. Forward-looking statements are
necessarily speculative in nature, and it can be expected that some or all of
the assumptions underlying any forward-looking statements may not materialize
or may vary significantly from actual results. Variations of assumptions and
results may be material. Factors that could cause actual results to differ
materially from the Company's expectations include, but are not limited to,
whether the Company's Sponsor will be able to continue to generate an
attractive pipeline of investments that will allow the Company to quickly
invest capital it raises, the ability of the operator of the Property to
effectively manage the Property, the ability of the borrower to comply with
the terms of the Senior Loan, whether the borrower determines to extend the
Senior Loan, the change in market rents for mid-acuity senior housing
facilities in Madera, California, changes in economic conditions generally and
the real estate and debt markets specifically, availability of capital,
ability to achieve targeted returns, generally accepted accounting principles
and policies and rules applicable to REITs. Additional factors that could
cause actual results to differ materially from those in the forward-looking
statements are specified in the Company's Annual Report on Form 10-K for the
year ended December 31, 2012 and its other filings with the Securities and
Exchange Commission. Such forward-looking statements speak only as of the
date of this press release. The Company expressly disclaims any obligation to
release publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in its expectations with regard thereto
or change in events, conditions or circumstances on which any statement is
based.

SOURCE NorthStar Healthcare Income, Inc.

Website: http://www.northstarreit.com/healthcare
Contact: Joe Calabrese, Phone: 212.827.3772, Email: jcalabrese@frbir.com
 
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