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Formation JV buys $150m healthcare portfolio

The Alpharetta, Georgia-based investment firm, which sold a $1 billion senior housing portfolio to NorthStar in March, has purchased 14 skilled nursing facilities.

A joint venture between Alpharetta, Georgia-based investment firm Formation Capital and global real estate and private equity firm Safanad Limited have acquired a portfolio of 14 skilled nursing facilities in the mid-Atlantic region for approximately $150 million.

The portfolio is comprised of 1,658 beds, with 11 facilities in Virginia, two in Maryland and one in Pennsylvania. The assets are operated by Consulate Health Care, the sixth largest provider of skilled nursing care, according to a press release from Formation.

“This transaction represents another solid investment that gives us an opportunity to leverage our healthcare and operating expertise, as well as strengthen our relationship with a best-in-class operator,” said Arnold Whitman, chairman of Formation, in a statement.

The transaction represents another step in the multi-year strategic partnership between the two firms, according to a statement by Vincent Pica, managing partner and president of Safanad.  “We continue to explore investment opportunities in the healthcare real estate sector, and this acquisition demonstrates our commitment to the sector and to our investment partners,” he added.

In March, the partners sold a $1.05 billion senior housing and skilled nursing portfolio to commercial real estate investment and asset manager NorthStar Realty Finance. The portfolio, which Formation and Safanad had acquired over the course of three years, was comprised of 43 senior housing and 37 skilled nursing facilities in 14 states, with 35 percent of the assets in Florida. The purchase brought NorthStar’s healthcare real estate portfolio to approximately 160 properties, valued at roughly $1.6 billion.