We continue to work hard to add value to our operator partnerships. We hold regular meetings to exchange ideas regarding best practices, and we are exploring ways in which our operators can take advantage of joint purchasing programs. One tangible result has been the establishment of a property and casualty program that has produced an 18% average cost reduction with improved coverages.
Our private pay percentage is now 74% and is expected to reach 80% within 12 months. And with this private pay percentage and the strong contribution from our RIDEA assets, we continue to believe that our portfolio is undervalued relative to other property types, particularly multifamily. And this belief is supported by a number of factors, but including a continuing cap rate compression in our sector and the strong portfolio NOI growth. These properties were the combination of solid NOI growth and relatively low capital expenditure requirements that performed very well even during the toughest economic times.
On May 1 this quarter, we closed a previously announced $937 million Chartwell transaction. Chartwell is Canada's largest senior housing operator, with high-quality assets in Metropolitan areas. This investment will be immediately accretive in markets with excellent demographic trends, and we look forward to a successful partnership and future growth in Canada and other strong markets.
Let me discuss another important transaction from the second quarter, and that is our joint venture with Legend Senior Living. Legend and HCN entered into a $279 million joint venture. Of the 15 facilities in the program, 9 were contributed by Legend and 6 by HCN. The real estate will be owned -- is owned 88% by HCN and 12% by Legend. Operations are owned 80% by Legend and 20% by HCN. Legend has been engaged as the independent manager.We expect to expand the joint venture over time through opportunistic acquisitions as well as development of additional facilities in Legend's footprint. This is particularly noteworthy for us as we have been doing business with Tim Buchanan since 1995, when we financed his original company, Sterling House. Sterling House is now part of Brookdale. Tim is one of the early pioneers in our sector and is currently on the Board of Directors of ALFA. We have supported Tim through a number of successful ventures since 1995, and we're gratified to be entering into this larger, more closely aligned relationship with Tim and his team, who have always performed at the highest level. Read the rest of this transcript for free on seekingalpha.com
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