NorthStar Healthcare Income is a non-traded REIT that owns a portfolio of seniors housing properties across the U.S. The portfolio consists of 42 properties spanning three facility types: Independent Living Facilities (ILFs), Assisted Living Facilities (ALFs), and Memory Care Facilities (MCFs). ILFs dominate the portfolio with 34 properties. NorthStar Healthcare does not operate these properties directly — it owns the real estate and engages third-party managers (Solstice Senior Living, Arete Living, Watermark Retirement Communities, and Integral Senior Living) to run day-to-day operations under management agreements. Solstice manages the 32-property Winterfell portfolio and accounts for roughly 70% of resident fee and rental revenues. Revenue comes almost entirely from resident fees and rental income, with key drivers being occupancy, monthly resident rates, and property mix. Since properties are operated rather than net leased, NorthStar Healthcare consolidates property-level revenues and expenses and bears full operating risk. Costs are primarily labor, food, utilities, and maintenance — all sensitive to inflation. Managers are paid a base fee of roughly 4-5% of gross revenues plus performance-based incentive fees. Revenue is predominantly private pay, giving operators more pricing flexibility than government-reimbursed facilities. NorthStar Healthcare has shifted its strategy from growth to wind-down, disposing of underperforming assets and entering a merger agreement in January 2025 to be acquired by a Welltower affiliate for $3.03 per share in cash, expected to close in Q2 2025.