NorthStar Healthcare Income Inc., a non-traded real estate investment trust, has recently completed the internalization of its management function. This move comes as part of a strategic review process to strengthen the company's capital position and maximize stockholder value.
A New Chapter Begins
With a focus on improving efficiency and transparency, NorthStar Healthcare Income Inc. has decided to terminate its advisory agreement with CNI NSHC Advisors, LLC. By internalizing its management and operating functions, the company aims to align the interests of the management team with those of the company and its stockholders.
A Transition Towards Success
To ensure a smooth transition, the company has executed a short-term transition services agreement with its former external advisor. This agreement will facilitate the seamless continuation of the company's operations while the internalized management team takes charge. The transition to a self-managed structure is projected to reduce general and administrative expenses by approximately $7 million in 2023, contributing to the company's overall earnings.
Experienced Leadership at the Helm
Kendall Young, a healthcare real estate investment trust executive with nearly 40 years of experience in real estate, has been appointed as the new Chief Executive Officer and President of the company. Alongside a group of former employees of the advisor who have now become part of the internalized company, including Nicholas Balzo as the Chief Financial Officer, the team will be wholly committed to managing investments and achieving strategic objectives.
A Transformation for Growth
The internalization of management will bring forth a more transparent and simplified organizational model, enabling a more efficient implementation of NorthStar Healthcare's strategy. With this new structure, the company aims to maximize value for its stockholders. The decision to internalize management was made after thorough evaluation and has been unanimously approved by a special committee consisting of independent and disinterested directors of the company.
A Promising Future
"I am very pleased to have the opportunity to lead NorthStar Healthcare and am excited about joining the company," said Kendall Young. "We are well-positioned to execute NorthStar Healthcare's strategy and create stockholder value." With strong leadership, industry knowledge, and experience, Young is poised to lead the company towards a prosperous future.
In conclusion, the internalization of management by NorthStar Healthcare Income Inc. marks a significant milestone in its quest for growth and value creation. By streamlining operations and aligning interests, the company is positioning itself for future success. With an experienced leadership team at the helm, NorthStar Healthcare is ready to embark on an exciting new chapter of growth and prosperity.
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