Northstar Closes on $125M Long Island Senior Living Portfolio Acquisition

Northstar LICNorthStar Healthcare Income, Inc. has completed its acquisition of a 570-unit portfolio of four senior living facilities in Long Island, NY for a purchase price of $125 million, plus closing costs.

NorthStar Healthcare acquired the portfolio from Five Long Island Properties, LLC and funded the investment with proceeds from its ongoing initial public offering.

The portfolio consists of four buildings totaling 404,000 square feet. Each facility is 100 percent leased to Arcadia Management, Inc. pursuant to a 15-year, cross-defaulted net lease, whereby the tenant is responsible for substantially all of the operating expenses at each facility. Each lease provides for annual rent escalations.

As of July 31, 2014, the Portfolio’s overall resident occupancy was 89 percent. The portfolio is currently unlevered and NorthStar Healthcare intends to obtain financing for the portfolio in the future.

For the most recent fiscal year, the portfolio was subject to local real estate taxes of $8.2 million, or 16.0% of its assessed tax value.