IRVINE, CA—Griffin-American Healthcare REIT III Inc. said Wednesday that its joint venture with NorthStar Healthcare Income Inc. had closed on the acquisition of approximately 96% of Trilogy Investors LLC, the parent company of Trilogy Health Services. First announced this past September, the deal values Trilogy at approximately $1.125 billion.

When the deal was first announced, Griffin-American called it "transformational" in terms of its own portfolio, nearly doubling it to $2 billion in real estate and related investments. "The Trilogy acquisition highlights the value of the strategic partnership between the Griffin-American and NorthStar Healthcare platforms, which worked together in a synergistic fashion for the benefit of both groups of stockholders," says Jeff Hanson, chairman and CEO of Irvine, CA-based Griffin-American.

Adds Danny Prosky, Griffin-American's president and COO, "Trilogy's annual growth rate and profitability has been consistently impressive over the course of the past two decades, through good times and bad." He says that Trilogy's portfolio is "strategically located in select markets experiencing growing demand for long-term care services," and that the company has been "at the forefront of a changing healthcare delivery landscape in this country and its model is an example that other companies in this industry will come to emulate."

Griffin-American and NorthStar are 70/30 partners in the JV. As part of the transaction, Trilogy founder and CEO Randy Bufford and other members of Trilogy's management have retained an equity interest of approximately 4%. Bufford and his executive team will continue to manage the Trilogy assets on behalf of the joint venture.

Founded in 1997, Trilogy owns and operates purpose-built integrated senior healthcare campuses across Indiana, Ohio, Michigan and Kentucky. It operates a total of 97 properties comprised of more than 10,000 beds, most either built or substantially renovated in the past 10 years