*The Amarillo medical office building—a single-story building comprised of 58,000 square feet located in close proximity to Baptist St. Anthony Health System, Northwest Texas Healthcare System, and Texas Tech University Medical Center. The building was originally built in 1997 and later expanded and refurbished in 2007. Amarillo Heart Group LLP has completely leased the property through May 2023 with an option to extend the lease an additional 10 years. The lease allows for annual rent escalations of four percent and is guaranteed by eight of the physician partners of Amarillo Heart Group.

*The Houston building—a two-story medical office building consisting of approximately 30,000 square feet. The facility is fully leased by Memorial Hermann Health System through 2019. Memorial Hermann is the largest not-for-profit healthcare system in Texas and serves the greater Houston community through 12 hospitals, a vast network of affiliated physicians and numerous specialty programs and services.

*Tempe St. Luke’s Medical Office Building—a three-story, approximately 60,000-square-foot facility built in 1996 on the campus of the 87-bed Tempe St. Luke’s Hospital, a state-of-the-art hospital that has served its community for more than 60 years. The building is currently 84.8% leased to nine tenants, the largest of which is Tempe St. Luke’s Hospital.

The Chula Vista buildings were acquired from Centre Medical Plaza LP, an unaffiliated third party represented by Alex Mobin of Marcus & Millichap. The Amarillo and Houston properties were acquired from the Sanders Trust, an unaffiliated third party represented by J. Michael Davis, Alfonzo Leon, Joe Dominguez and Tim Schier of Cain Brothers. The Tempe building was acquired from an unaffiliated third party represented by John Smelter of Marcus & Millichap.

The acquisitions were financed through the assumption of $17.3 million of existing debt, $25.6 million in borrowings under Griffin-American Healthcare REIT II’s line of credit with Bank of America NA, as well as net cash on hand.

As of Dec. 31, 2011, the Griffin-American Healthcare REIT II property portfolio was 96.1% leased with a weighted average remaining lease term of approximately 10 years and leverage of 18.4%. As of May 1, 2012, the Griffin-American Healthcare REIT II portfolio totaled 76 buildings valued at approximately $715 million, based on purchase price.

GlobeSt.com recently reported on the healthcare REIT’s earnings. According to the company’s fourth-quarter and year-end 2011 results, the REIT showed exponential growth from healthcare-related assets. The REIT’s portfolio of healthcare real estate more than doubled compared to 2010, resulting in important financial metrics such as modified funds from operations and net operating income experiencing 500% and 400% growth, respectively, as compared to 2010, according to Prosky. Prosky previously told GlobeSt.com that the report bodes well for the healthcare sector. “I think that we happen to be a great sector, and we’re fortunate in that sense. Healthcare rents and occupancies have held up very well, we have not seen a rash of delinquencies like in other sectors, and it’s been a very stable part of the economy. The country lost a lot of jobs in 2008 and 2009, but we gained new healthcare jobs. There’s a built-in in margin of error in healthcare,” he said.