NorthStar Healthcare Income Inc. announced that it has closed a strategic joint venture with The Freshwater Group. The joint venture plans to acquire and manage a portfolio of senior housing assets located throughout the United States and has initially identified three properties with a combined purchase price of USD 86.6 million, plus closing costs. NorthStar Healthcare owns a 97% interest in the joint venture.

The joint venture's initial investment consists of a 125-unit independent living facility located in Milford, Ohio, which was acquired for a total cost of USD 16.3 million. NorthStar announced the joint venture is also under contract to purchase a 184-unit independent and assisted living facility located in Denver, Colorado for USD 31.5 million, plus closing costs, which is expected to close in January 2014. A third property with a purchase price of USD 39.5 million has been identified by the joint venture and is currently under due diligence review.

An affiliate of Freshwater will manage these properties as well as any additional assets purchased by the joint venture. NorthStar Healthcare also announced the USD 10.1 million acquisition of a 56-unit memory care facility located in Smyrna, Georgia, which will be operated by an affiliate of Peregrine Health Management Company (Peregrine). Inclusive of this asset, Peregrine operates three of NorthStar Healthcare's senior living facilities totaling 118 units with a combined cost of USD 24.3 million and the companies continue to explore additional opportunities.