NorthStar Healthcare Income, Inc., through a subsidiary of its joint venture with The Freshwater Group, Inc., has completed its acquisition of the Parkview Facility, a 202-unit independent living facility located in Frisco, TX.
The purchase price was $39.5 million, plus closing costs and credits for capital expenditures. The JV acquired the Parkview Facility from Parkview Frisco, L.P.
The Parkview Facility was constructed in 2008 and consists of eight two- and three-story buildings totaling 299,000 square feet. As of January 20, 2014, resident occupancy was 91%.
An affiliate of Watermark Retirement Communities, Inc., a national operator of senior living facilities and an affiliate of Freshwater, was hired to operate the Parkview Facility. The seven-year management agreement has automatic one-year renewals under which Watermark will receive a base management fee equal to 5.0% of the monthly gross revenues collected.
Including the Parkview Facility, the Joint Venture has completed three acquisitions with a combined purchase price of $86.6 million, plus closing costs.
NorthStar Healthcare owns a 97% interest in the Joint Venture.
The Joint Venture funded this investment through a combination of proceeds from NorthStar Healthcare’s ongoing initial public offering, a $20.0 million senior mortgage note payable provided by a third-party lender and an equity contribution from Freshwater.