Formation Capital, NorthStar Realty joint venture buys senior-housing facilities

BUYER: Eclipse Decathlon RE Largo LLC (principal: Christina Firth, Alpharetta, Ga.
SELLER: Decathlon RE Largo LLC
PROPERTY: 9035 Bryan Dairy Road, Largo
PRICE: $20.42 million
PREVIOUS PRICE: $14.63 million, September 2012

BUYER: Eclipse Decathlon RE Countryside LLC
SELLER: Decathlon RE Countryside LLC
PROPERTY: 3825 Countryside Blvd., Palm Harbor
PRICE: $15.41 million
PREVIOUS PRICE: 3825 Countryside Blvd. N., Palm Harbor
LAW FIRM ON DEED: $18.3 million, September 2012

BUYER: Eclipse Decathlon RE Heritage Park LLC (principal: Christina Firth, Alpharetta, Ga.
SELLER: Decathlon RE Heritage Park LLC
PROPERTY: 2826 Cleveland Ave., Fort Myers
PRICE: $12.11 million
PREVIOUS PRICE: $6.01 million, September 2012

BUYER: Eclipse Decathlon RE Magnolia LLC
SELLER: Decathlon RE Magnolia LLC
PROPERTY: 1507 S. Tuttle Ave., Sarasota
PRICE: $17.01 million
PREVIOUS PRICE: $11.88 million, September 2012

BUYER: Eclipse Decathlon RE Fletcher LLC
SELLER: Decathlon RE Fletcher LLC
PROPERTY: 518 W. Fletcher Ave., Tampa
PRICE: $13.71 million
PREVIOUS PRICE: $9 million, September 2012

BUYER: Eclipse Opis RE Fairway LLC,
SELLER: Pentathlon RE Fairway LLC
PROPERTY: 13806 N. 46th St., Tampa
PRICE: $6.83 million
PREVIOUS PRICE: $5.78 million, December 2012
LAW FIRM ON DEED: Skadden Arps Slate Meagher & Flom LLP, New York City

PLANS, DESCRIPTION:
Alpharetta, Ga.-based Formation Capital LLC sold six Gulf Coast health care and rehabilitation facilities to a joint venture for $85.49 million. Formation Capital joined with New York City-based commercial real estate investment and asset management company NorthStar Realty Finance Corp. to take over ownership of the properties.

The joint venture acquired the Countryside Rehab and Healthcare Center in Palm Harbor, Magnolia Health and Rehabilitation Center in Sarasota, Fletcher Health and Rehabilitation Center and Fairway Oaks Center in Tampa, Largo Rehabilitation Center in Largo and Heritage Park Rehabilitation and Healthcare in Fort Myers.

Formation Capital LLC originally purchased the properties as part of a 10-property portfolio sale from Diamond Senior Living in the third quarter of 2012. All of the properties are triple-net leased to the skilled nursing service company Consulate Health Care.

The joint venture purchased a total of 43 primarily private-pay senior housing facilities and 37 skilled nursing facilities from Formation Capital. NorthStar and its affiliates will contribute 92% of the $430 million of equity to purchase the portfolio and the joint venture will assume in-place financing for the remainder of the purchase price. The portfolio was purchased for a 9.4% capitalization rate, a ratio comparing the purchase price to a property's income.

Formation Capital did not reply to a request for comment prior to deadline.