NorthStar Healthcare Income Modifies Asset Management Fees
July 6, 2021 | James Sprow | Blue Vault
On June 30, 2021, the board of directors (the “Board”) of NorthStar Healthcare Income, Inc. (“NorthStar Healthcare”) approved the renewal of the advisory agreement (as amended from time to time, the “Advisory Agreement”) by and among NorthStar Healthcare, NorthStar Healthcare Income Operating Partnership, LP (the “Operating Partnership”), CNI NSHC Advisors, LLC (formerly NSAM J-NSHC Ltd), NorthStar Healthcare’s advisor (the “Advisor”), and DigitalBridge Group, Inc. (f/k/a Colony Capital, Inc.), as successor to NorthStar Asset Management Group Inc., NorthStar Healthcare’s sponsor (the “Sponsor”). The Advisory Agreement was renewed for an additional one-year term commencing on June 30, 2021 upon terms identical to those in effect through June 30, 2021, but for the following modifications:
• a reduction of the Asset Management Fee (as defined in the Advisory Agreement) with respect to corporate cash balances exceeding $75 million, subject to the terms and conditions set forth in the Advisory Agreement; and
• the payment of the Management Fee (as defined in the Advisory Agreement) entirely in the form of shares of common stock of NorthStar Healthcare (collectively, the “Amendments”).
In connection therewith, on June 30, 2021, NorthStar Healthcare, the Operating Partnership, the Advisor and the Sponsor entered into Amendment No. 3 to the Advisory Agreement (“Amendment No. 3”) to effect the Amendments, to be effective June 30, 2021. Pursuant to the Advisory Agreement, the Advisor will continue to perform day-to-day operational and administrative services for NorthStar Healthcare, including asset management services, acquisition services, accounting services and stockholder services.
The foregoing description of the Advisory Agreement, as amended, does not purport to be complete and is subject to, and qualified in its entirety by, the Advisory Agreement filed as Exhibit 10.1 to NorthStar Healthcare’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on July 1, 2014, Amendment No. 1 to the Advisory Agreement filed as Exhibit 10.1 to NorthStar Healthcare’s Current Report on Form 8-K filed with the SEC on December 26, 2017, Amendment No. 2 to the Advisory Agreement filed as Exhibit 10.1 to NorthStar Healthcare’s Current Report on Form 8-K filed with the SEC on June 23, 2020, and Amendment No. 3 attached to this Current Report on Form 8-K as Exhibit 10.1, which agreement as amended is incorporated by reference herein.
Source: SEC
