Trilogy Health Services, LLC (“Trilogy”), a Louisville based provider of senior healthcare and hospitality services, today announced it has entered into a definitive agreement to be acquired by Griffin-American Healthcare REIT III, Inc. (“Griffin-American”) for approximately $1.125 billion via joint venture with NorthStar Healthcare Income, Inc. (“NHI”). Griffin-American will own 70 percent of the joint venture and will act as its manager. NHI will own 30 percent of the joint venture. As part of the transaction, Trilogy’s management team led by Randy Bufford, Trilogy’s founder and chief executive officer, will maintain an investment of approximately $24 million in Trilogy.

According to Randy Bufford, CEO and president of Trilogy, “We are excited for this new chapter in our company’s history. We have known the principals at Griffin-American and NHI for quite some time and have a great deal of respect for their vision and business acumen. We look forward to the financial and strategic support this new relationship will bring to our company as we continue our journey towards our goal of being the ‘Best Healthcare Company in the Midwest.’”

“This is a transformational event for Griffin-American Healthcare REIT III, which will nearly double in size upon the completion of the Trilogy acquisition to approximately $2 billion in real estate and real estate-related investments,” added Jeff Hanson, chairman, chief executive officer and one of the largest stockholders of Griffin-American Healthcare REIT III.  “Randy Bufford and his executive team have established themselves as one of the premier providers of long-term senior care in the country.”

Griffin-American president and chief operating officer Danny Prosky commented, “Trilogy has been strategically built over the course of nearly two decades in select markets that have experienced growing demand for long-term care services and in which Trilogy has established an industry-leading presence.  Further, Trilogy’s annual growth rate and profitability has been remarkably consistent over the past two decades, regardless of market cycle.”

Founded in 1997, Trilogy has grown to encompass 96 senior living communities in a four state area. Trilogy’s operations also extend to an institutional pharmacy (PCA Pharmacy) with four locations, and a rehabilitative services company, Paragon Rehabilitation. Trilogy employs over 13,500 associates across all business lines.
   
The transaction is subject to customary closing conditions and the satisfaction of other requirements as detailed in the agreement.  The investment has been structured with the intention of complying with the REIT Investment Diversification and Empowerment Act (RIDEA).

About Trilogy Health Services, LLC
Trilogy communities offer a full range of personalized senior health and hospitality services, from independent and assisted living, to skilled nursing and rehabilitative services in 96 senior living communities throughout Indiana, Ohio, Kentucky and Michigan. Trilogy’s senior living services are delivered by staff specially trained to honor and enhance the lives of our residents through compassion and commitment to exceeding customer expectations. To learn more about Trilogy Health Services, visit our website at trilogyhs.com.

About Griffin-American Healthcare REIT III, Inc.
As of August 14, 2015, Griffin-American Healthcare REIT III has acquired a diversified portfolio of healthcare assets totaling 67 buildings and one collateralized debt instrument for an aggregate purchase price of approximately $1.03 billion.

Griffin-American Healthcare REIT III, Inc. qualified to be taxed as a real estate investment trust for federal income tax purposes beginning with our taxable year ended December 31, 2014, and intends to continue to be taxed as a REIT. Griffin-American Healthcare REIT III invests in a diversified portfolio of healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT is co-sponsored by American Healthcare Investors and Griffin Capital Corporation. For more information regarding Griffin-American Healthcare REIT III, please visit www.HealthcareREIT3.com.

About NorthStar Healthcare Income, Inc.
NorthStar Healthcare is a public, non-traded real estate investment trust (REIT) sponsored by NorthStar Asset Management Group Inc. NorthStar Healthcare was formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate, with a focus on the mid-acuity senior housing sector, which we define as assisted living, memory care, skilled nursing and independent living facilities. NorthStar Healthcare also invests in other healthcare property types, including medical office buildings, continuing care retirement communities, hospitals and rehabilitation facilities.