NorthStar Healthcare announces acquisition of $875 million independent living portfolio

NorthStar Healthcare Income, Inc. (NorthStar Healthcare), through a joint venture with NorthStar Realty Finance Corp. (NorthStar Realty), announced today the acquisition of an $875 million portfolio of independent living facilities (the Portfolio) from affiliates of Harvest Facility Holdings LP. The Portfolio will continue to be managed by Holiday Retirement Communities, one of the largest operators of independent living communities in North America. Through its joint venture with NorthStar Realty, NorthStar Healthcare acquired a 40% interest in the Portfolio and NorthStar Realty acquired the remaining 60% interest. In connection with the acquisition, the joint venture obtained ten-year, fixed rate financing through Fannie Mae's Multifamily DUS Loan Program, with an aggregate principal amount of approximately $648 million and a fixed interest rate of 4.17%.

About the Portfolio:

• Comprised of 32 independent living communities with 3,983 units;
• 100% private pay;
• Geographically diversified throughout the United States with communities located in 12 states, with the largest concentration of facilities within California, Texas and Washington;
• As of March 31, 2015, the Portfolio's overall resident occupancy was approximately 93%.

"The experience of our healthcare team and its extensive relationships within the healthcare industry have and will continue to play a significant role in our ability to source and execute on institutional-quality healthcare portfolios," said Ronald J. Jeanneault, chief executive officer and president of NorthStar Healthcare. "This acquisition allows NorthStar Healthcare to deploy significant capital into a high-quality private pay portfolio of independent living communities in line with our investment objectives."

NorthStar Healthcare and NorthStar Realty are both externally managed by NorthStar Asset Management Group Inc. (NSAM), a global asset management firm focused on strategically managing real estate and other investment platforms in the United States and internationally.

NorthStar Healthcare's portfolio consists of 21 investments with an aggregate total cost of $1.5 billion, including 17 equity investments with an aggregate total cost of $1.3 billion and four debt investments with an aggregate principal amount of $145.9 million as of May 27, 2015.