NorthStar Healthcare Joint Venture Completes Acquisition of Trilogy Health Services in $1.125 Billion Transaction
New York, NY (December 2, 2015) – NorthStar Healthcare Income, Inc. (NorthStar Healthcare) today announced that, pursuant to a joint venture with Griffin-American Healthcare REIT III, Inc. (Griffin-American), it has completed the acquisition of approximately 96% of Trilogy Investors, LLC (Trilogy), the parent company of Trilogy Health Services, LLC, for a purchase price that is based on a total company valuation of approximately $1.125 billion. NorthStar Healthcare owns 30% of the joint venture, while Griffin-American owns 70% of the joint venture and acts as its manager. In addition, as part of the transaction, Randy Bufford, Trilogy’s founder and chief executive officer, and other members of Trilogy’s management have retained an approximately 4% equity interest in Trilogy. Bufford and his executive team will continue to manage the Trilogy assets on behalf of the joint venture.
Founded in 1997, Trilogy is a leading owner-operator of purpose-built integrated senior healthcare campuses throughout the states of Indiana, Ohio, Michigan and Kentucky. During the course of its 18 year history, Trilogy has experienced consistent growth primarily through the development of new campuses and consumer needs-driven upgrades of existing ones. Trilogy now operates a total of 97 properties comprised of more than 10,000 beds, most of which were either built or substantially renovated in the past 10 years. Trilogy’s integrated senior health campuses offer a range of care and accommodations, including assisted living, memory care, independent living and skilled nursing services.
“The completion of the Trilogy acquisition is indicative of our sponsor’s ability to identify and source significant institutional opportunities and the value of its strategic partnership with American Healthcare Investors, the sponsor to Griffin-American. The strength and cooperation of our two healthcare platforms was instrumental in sourcing, diligencing and executing on this opportunity for both companies’ shareholders,” said Ron J. Jeanneault, chief executive officer and president of NorthStar Healthcare. “Trilogy is a successful and respected long-term senior care provider and this investment further grows and diversifies NorthStar Healthcare’s senior housing portfolio.”
NorthStar Healthcare's portfolio consists of 39 investments with an aggregate total cost of $2.8 billion, including 35 equity investments with an aggregate total cost of $2.6 billion and four debt investments with an aggregate principal amount of $193 million as of December 1, 2015.