Griffin-American Healthcare REIT IV Buys Medical Office Building Near Atlanta
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Company, purchased the Lawrenceville Medical Office Building in the Atlanta suburb of Lawrenceville, Georgia. According to a filing with the Securities and Exchange Commission, the property was purchased from Salem Gwinnett Properties Associates for approximately $11.3 million plus closing costs.
Built in 2005, the approximately 31,000-square-foot Lawrenceville Medical Office Building is currently 100 percent absolute net leased to Gwinnett Cardiology Services through May 2023 with 3 percent annual rent escalators and four five-year renewal options.
“Lawrenceville Medical Office Building is a modern, Class A building with quality finishes located near one of the largest hospitals in the region,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “We especially appreciate the single-tenant lease that is guaranteed by an investment grade credit health system, which we believe adds extra value to this property.”
Griffin-American Healthcare REIT IV financed the acquisition using cash on hand, borrowings under its revolving line of credit with Bank of America, N.A. and KeyBank, National Association, and through the assumption of an existing loan totaling approximately $8 million.
In other company news, the REIT recently purchased a senior housing portfolio near St Louis for approximately $31.8 million.
Griffin-American Healthcare REIT IV invests in healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT commenced its initial public offering in February 2016, and as of March 31, 2017, had raised approximately $187.7 million in investor equity. The company’s portfolio consists of 22 medical office buildings and senior housing facilities purchased for a total of approximately $272 million.
