NorthStar Healthcare Income buys $639M CCRC portfolio

NorthStar Healthcare Income Inc. has closed on a $639.3 million portfolio of 15 continuing care retirement communities, the company has announced.

The portfolio was acquired from subsidiaries of Fountains Senior Living Holdings LLC, an investment entity sponsored by Arcapita, a Bahrain-based investment firm. It includes 23 life estate units. Six entrance fee properties were acquired directly by NorthStar and leased to affiliates of Freshwater pursuant to a master net lease.

The portfolio will continue to be operated by Watermark Retirement Communities, an affiliate of The Freshwater Group Inc. NorthStar, a public, non-traded real estate investment trust sponsored by NorthStar Asset Management Group Inc., received fixed rate financing through Freddie Mac's Multifamily-Seniors Housing Loan Program. The aggregate principal loan amount was approximately $410 million; it came with a fixed interest rate of 3.92% and a term of 7 years.

"This transaction represents Arcapita's fifth successful exit in the senior living sector, which continues to benefit from favorable long-term fundamentals," said Arcapita CEO Atif Abdulmalik in a Reuters account.