Northstar Healthcare acquires Trilogy

December 9, 2015

By on December 03 2015 7:23 PM

Northstar has announced the completion of the acquisition of around 96 percent of Trilogy Investors through a joint venture with Griffin-American REIT III, Inc. While Northstar owns 30 percent of the joint venture, Griffin-American owns the remaining 70 percent.

Trilogy’s management team, led by the company’s founder and chief executive officer, Randy Buffors, will continue to have approximately 4 percent equity interest in Trilogy as part of the transaction. The team will continue to manage the assets of Trilogy under the joint venture. Trilogy, which owns and operates several integrated senior healthcare campuses in many US states, was founded in 1997 and currently operates 97 properties with a total of 10,000 beds.

“We are excited to begin the next chapter in Trilogy’s history.  Partnered with Griffin-American and NorthStar Healthcare, Trilogy Health Services will benefit from greater financial and strategic support as we continue to expand and fulfill our mission to be the ‘Best Healthcare Company in the Midwest,” says Buffors, according to a PR Newswire press release.

“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,” Ron J. Jeanneault, president and CEO of NorthStar Healthcare, says.  According to him, the strength and cooperation of the two  companies was what facilitated the acquisition process – from sourcing to diligencing and execution. Northstar has a large portfolio encompassing 39 investments at a total cost of US$2.8 billion.

“Trilogy’s annual growth rate and profitability has been consistently impressive over the course of the past two decades, through good times and bad,” says Danny Prosky, Griffin-American’s president and CEO, according to as GlobalNewsWire press statement. Trilogy has an extensive portfolio, located strategically in markets with long-term growth potential. The company has, through the years, led the American healthcare landscape, with its business model an example for the industry, says Prosky.

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Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015

Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.