Real estate investment trust NorthStar Realty Finance Corporation said Monday it has agreed to acquire a portfolio of nursing home properties from investment firms Formation Capital and Safanad in a deal worth $1.05 billion.
The terms of the deal call for NorthStar to contribute roughly $395.6 million in equity toward the purchase, while a joint venture between NorthStar and Formation will finance the balance of the overall transaction price. The addition of the portfolio—which includes 43 private-pay senior housing facilities as well as 37 skilled nursing facilities—will expand NorthStar’s overall portfolio of health care real estate to more than 160 properties. Bloomberg notes that more than a third of the properties covered by the transaction are in Florida.
Fried, Frank, Harris, Shriver & Jacobson is representing NorthStar on the transaction with a team led by corporate vice chair Steven Scheinfeld and real estate partner Harry Silvera, both of whom are based in New York. The firm previously advised NorthStar on the formation of a joint venture with affiliates of senior-housing investor The Freshwater Group.
Formation Capital is being advised by a team of attorneys from Skadden, Arps, Slate, Meagher & Flom that includes New York–based real estate partners Neil Rock and Vered Rabia. Tax partners John Rayis and David Levy are also working on the deal, as are M&A partner Jeremy London, litigation partner Eric Waxman and labor and employment partner John Furfaro. The Skadden associates working on the deal are Nesa Amamoo and Eunjoo Chung.
Skadden advised Formation subsidiary Genesis HealthCare on its 2012 purchase of Sun HealthCare Group in a $275 million deal.
Gibson Dunn & Crutcher is advising Safanad with a team that includes tax partners Arthur Pasternak and Benjamin Rippeon in Washington, D.C., along with New York–based M&A partner David Wilf and real estate partners Steven Klein and Andrew Lance.