NorthStar to buy Griffin-American Healthcare REIT for $4B

Company beats out American Realty Capital with biggest health care real estate deal in 3 years

New York-based property investment company NorthStar Realty Finance Corp. has agreed to buy Griffin-American Healthcare REIT for $4 billion in a cash-and-stock deal.

Nearly 75 percent of Griffin-American’s holdings are comprised of medical office buildings and senior housing facilities in the United States and the United Kingdom, according to a statement from NorthStar. The purchase follows NorthStar’s $1 billion acquisition of senior housing and nursing home buildings in March.

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The transaction is the biggest health care real estate deal in three years, Bloomberg News reported. Three other bidders – Chicago’s Ventas, Health Care REIT Inc. of Toledo, Ohio and investor Nicholas Schorsch’s American Realty Capital Healthcare REIT – were also finalists in the bidding process, according to the Wall Street Journal.

NorthStar expects the transaction to close in the fourth quarter of 2014. [Bloomberg News] and [WSJ]Tom DiChristopher