(Save the date: RealShare Medical Office Buildings comes to the Four Seasons in Scottsdale, AZ, November 7 -8.)
NEWPORT BEACH, CA-American Healthcare Investors and Griffin Capital Corp., co-sponsors of Griffin-American Healthcare REIT II Inc., have revealed that the REIT has acquired three medical office buildings in Knoxville, TN, and Desoto, TX, for an aggregate purchase price of approximately $59.6 million. The REIT’s current portfolio totals 113 buildings valued at approximately $985 million, based on purchase price, and is diversified across 26 states.
Since January 1, the portfolio has grown by approximately 125%, based on purchase price, while maintaining leverage of 31.2%, as of June 30. This percentage is among the lowest in the non-traded REIT industry, according to independent research provided by Blue Vault Partners LLC.
According to Danny Prosky, a principal of American Healthcare Investors and president and COO of the REIT, “We continue to source attractive acquisition opportunities, which we believe provide greater scale and diversification to the portfolio of Griffin-American Healthcare REIT II. We have more than doubled the size of the REIT’s portfolio since the beginning of the year.”
The three new acquisitions include the East Tennessee Medical Office Building portfolio, which consists of two single-tenant, two-story medical office buildings totaling approximately 167,000 square feet on the campus of the Provision Health Alliance, a comprehensive clinical outpatient healthcare center in Knoxville, TN. The portfolio was acquired from an unaffiliated third party represented by E. Hunter Beebe of Healthcare Real Estate Capital LLC. GAHR II financed the acquisition using $50 million in borrowings under is unsecured line of credit with Bank of America N.A., and the remaining using cash on hand.
The Provision campus is strategically located in the midst of a thriving healthcare corridor within short distance of six hospitals and approximately 2,200 hospital beds. Completed in 2009, the portfolio is 100% master-leased to Provision Healthcare through 2024.
The third acquisition is the Desoto Medical Office Building, a single-story building constructed in 2011 consisting of approximately 30,000 square feet in the Dallas suburb. GAHR II purchased the property from Caddis Partners, an unaffiliated third party represented by Cain Brothers. The REIT financed the acquisition using $5.5 million in borrowings under its unsecured line of credit with Bank of America, N.A., and the remaining using cash on hand. The property is currently 100% leased to four tenants, the largest of which is Texas Health Resources, through November 2018.
As GlobeSt.com previously reported, last month GAHR II acquired 13-buildings known as the Pacific Northwest Senior Care Portfolio, plus an additional seven medical office buildings for $103 million. The announcement came approximately a week after the REIT’s announcement that it inked a definitive agreement to acquire Sunrise Senior Living for $1.9 billion.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
