The basics:
- Northwind closes $342.5M Health Care Debt Fund II, exceeding $250M target
- Fund supports financing for skilled nursing, senior housing properties
- Northwind has transacted $4.6B across 423 properties in 26 states
- New Jersey remains a key market, with 22 financed facilities covering 3,400+ beds/units
Marking the final close on its latest health care debut fund, real estate private equity firm and debt fund manager Northwind Group has exceeded its $250 million target.
According to a Nov. 13 announcement from the New York-based company, Northwind Healthcare Debt Fund II reached a total capitalization of $342.5 million.
The health care credit platform provides structured and bridge financing to U.S. Department of Housing and Urban Development loans. It supports income-producing portfolios of skilled nursing and senior housing properties. NHDF II funds owner-operators focused on high barrier to entry markets with strong demographics and supportive health care policies.
Northwind launched its health care platform in 2016. Since then, it says it has transacted $4.6 billion in health care properties. The sites comprise 423 skilled nursing and senior living properties across 26 states with more than 48,000 beds or units.
Founder and Managing Partner Ran Eliasaf characterized the close as a significant milestone for the platform. He also noted it is Northwind’s largest fund to date in the space.
“Within the U.S. health care value chain, senior living residences and skilled nursing facilities serve as essential care settings, providing structured and secure environments tailored to the needs of elderly populations,” added Jonathan Slusher, partner and head of senior living & healthcare at Northwind Group.
Further describing the fund’s target investments, Eliasaf said these assets prioritize patient care, invest in their organizational culture and utilize innovative technologies to enhance clinical outcomes.
The company said it is able to provide market leading capital investment and advisory solutions in this space thanks to its deep industry knowledge, network of industry stakeholders and expertise in capitalizing health care portfolios.
Gaining steam
In a June senior living and care investor survey and report, Cushman & Wakefield noted strong – and building – fundamentals in the sector.
Stabilized occupancy has increased for 17 straight quarters to surpass 89%. Additionally, CushWake said occupied units hit an all-time high to start 2025, with net absorption outpacing supply growth by 2.5 to 1 in Q1.
In the investor survey, the Northeast held its position as the strongest region, with stabilized occupancy nearly 91%. Meanwhile, annual rent growth here nears 3.5%, Cushman & Wakefield said.
Benchmark
Benchmark Senior Living and National Development announced expanding into New Jersey in October.
Arbor Terrace Roseland is an 85-apartment assisted living and memory care community.
Synovus Bank provided financing to the joint venture.
According to the JV, more Benchmark communities are coming to the Garden State. Benchmark at Scotch Plans will open in 2026, the team said. Benchmark at Cedar Grove will then follow in 2027.
Located on 4.3 acres in Roseland, the inaugural New Jersey property comprises 68,000 square feet of living space. Located at 345 Eagle Rock Ave., the property offers proximity to Interstate 280.
The second half of 2024 also saw the highest senior living transaction volume in the post-pandemic era. The report put the figure at an almost 70% year-over-year increase “as dry powder emerged from the sideline and debt liquidity cautiously returned to the sector.”
Since 2019, Northwind has financed 22 senior housing and skilled nursing facilities in New Jersey, Eliasaf told NJBIZ. Across four separate loans, the deals cover more than 3,400 beds/units. “Two loans have been repaid in full, and the remaining two are stabilized portfolios,” he said. “New Jersey has continually supported the skilled nursing and senior housing industry, and we have had success financing premier owner-operators in the state.”
Within Northwind’s portfolio, Slusher said, “Each location is a critical economic and health care hub for the residents, team members, and community in which it serves. The increasingly aging and more acute population, stability in daily operating dynamics, and the need for critical care assets to be refreshed and operated by leading, well capitalized enterprises continue to drive strong transaction activity and solid performance.”
According to Northwind Group, it currently has $2.5 billion in assets under management overall.
Continuum Advisors
Continuum Advisors announced the sale of Laurel Circle in Bridgewater in October.
The 270-unit Continuing Care Retirement Community sites on 25 acres. It comprises:
- 183 independent living apartments
- 19 independent living villas
- 30 assisted living units
- 10 memory care units
- 29 skilled nursing units
- 5 acres of undeveloped land for future expansion
According to reports, the property fetched $54.5 million.
The national senior housing investment sales and advisory firm exclusively represented the owners in the transaction. The joint venture seller included LCS.
“From distress to success, the sale of Laurel Circle represents the full cycle of a strategic investment in an Entrance Fee CCRC / Life Plan community,” said Continuum co-founder David Kliewer. “The successful turnaround demonstrates the strength of the Entrance Fee CCRC business model and demand for this asset class.”
Continuum principals previously arranged the sale of Laurel Circle, then Arbor Glen, in 2018. At the time, the buyer acquired the property out of a defaulted bond sale process.
Since, the seller invested more than $15 million in capital improvements, Contiuum said. They also shifted to Type C (Fee-for-Service) entrance fee contracts.
