Griffin-American Healthcare REIT III Completes Acquisitions Totaling $244 Million
Griffin-American Healthcare REIT III Inc., a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Corporation, purchased seven integrated senior health campuses and three medical office buildings in five states for a total purchase price of approximately $178.6 million during the second quarter of 2016. After the close of the quarter, the REIT acquired a portfolio of five skilled nursing facilities located in Massachusetts for approximately $65.5 million.
“As we work to conclude the build-out of the Griffin-American Healthcare REIT III portfolio, we seek to continue to add value with the addition of assets,” said Danny Prosky, president, chief operating officer and one of the largest stockholders of the REIT. “With these latest acquisitions, our portfolio is now valued in excess of $2.7 billion, based on consolidated purchase price, and we continue to pursue our strategic plan for the REIT.”
Griffin-American Healthcare REIT III’s Second Quarter 2016 acquisitions include:
Trilogy – Indiana & Kentucky
Griffin-American Healthcare REIT III acquired the real estate of seven previously leased integrated senior health campuses totaling 836 beds, including 515 skilled nursing beds, 248 assisted living/memory care beds and 73 independent living units located throughout Indiana and Kentucky. At the time of acquisition, the occupancy for the seven campuses was 90.3 percent.
Middletown Medical Office Building – Middletown, Ohio
Built in 2007, Middletown Medical Office Building is a five-story medical office building located on the campus of the 328-bed Atrium Medical Center in the Cincinnati suburb of Middletown, Ohio. The approximately 103,000-square-foot building was 80 percent leased at the time of acquisition to 13 tenants, the largest of which includes Premier Health Partners and its affiliates, which occupy approximately 61 percent of the building.
Joplin Medical Office Building – Joplin, Missouri
The approximately 85,000-square-foot Joplin Medical Office Building is a four-story medical office building 100 percent leased at the time of acquisition to 10 tenants. The building is strategically located in the midst of Joplin, Missouri’s “Medical Mile,” which includes the 286-bed Mercy Hospital Joplin, the 346-bed Freeman West Hospital and the 30-bed Landmark Hospital of Joplin, all located within an approximately four-mile radius of Joplin Medical Office Building.
Austell Medical Office Building – Austell, Georgia
Austell Medical Office Building is an approximately 39,000-square-foot medical office building in the Atlanta suburb of Austell, Georgia. Built in 2008, the building was 100 percent leased at the time of acquisition to three tenants, including OrthoAtlanta, LLC, one of Greater Atlanta’s largest orthopedic and sports medicine practices, and its affiliate, which occupy approximately 91 percent of the building through May 2031.
Subsequent to the close of the second quarter, Griffin-American Healthcare REIT III acquired:
Fox Grape Skilled Nursing Facility Portfolio – Massachusetts
Fox Grape Skilled Nursing Facility Portfolio is comprised of five skilled nursing facilities totaling 651 beds located throughout the affluent South Shore area near Boston. The portfolio is leased under a 15-year absolute net lease to BaneCare Management, LLC, which assumed operation of the facilities and is responsible for all capital expenditures required to maintain the portfolio.
Griffin-American Healthcare REIT III completed each of the acquisitions using cash-on-hand and borrowings.
The Griffin-American Healthcare REIT III portfolio is comprised of medical office buildings, hospitals, skilled nursing facilities, senior housing facilities and integrated senior health campuses, as well as real estate-related investments, valued in excess of $2.7 billion, based on total purchase price.
