NorthStar to Buy $1.05 Billion of Health-Care Buildings

NorthStar Realty Finance Corp., a New York-based property investment company, agreed to buy 60 U.S. senior housing and nursing-home buildings as it seeks to expand in health-care real estate.

The sellers are Formation Capital and Safanad Ltd., NorthStar said in a statement today. NorthStar will contribute about 92 percent of the $430 million in equity for the purchase, with NorthStar and Formation jointly taking over financing for the rest of the transaction price, according to the statement. The real estate is valued at $1.05 billion.

The deal would bring NorthStar’s health-care real estate holdings to 160 buildings worth $1.6 billion, according to the company. The expansion of the business is being led by Jay Flaherty, who joined NorthStar two months ago after he was fired as chief executive officer of HCP Inc., the third-biggest U.S. health-care real estate investment trust by market value.

“This transaction represents an initial step towards our goal of expanding NorthStar’s health-care portfolio into a pre-eminent health-care real estate business,” Flaherty said in the statement. “We are enthusiastic that this will be the first of many compelling transactions that we can complete with our partners at Formation Capital.”

The purchase includes 43 private-pay senior housing buildings and 37 nursing homes, according to the statement. More than a third of the buildings are in Florida.

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