Griffin-American Healthcare REIT IV Buys Michigan Medical Office Building
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by Griffin Capital and American Healthcare Investors, purchased Battle Creek Medical Office Building in Battle Creek, Michigan for $7.3 million, according to a filing with the Securities and Exchange Commission. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand.
Battle Creek Medical Office Building, an approximately 46,000-square-foot property located on 7.3 acres of land, is approximately 97 percent leased and anchored by Ambulatory Surgery Associates, LLC (doing business as Brookside Surgery Center), which recently signed a new lease and occupies approximately 14,000 square feet, or 31 percent of gross leasable area, through 2027.
Brookside Surgery Center has invested approximately $1.2 million in tenant improvements at the property and has made other significant non-real estate-related investments to their business. The remaining leaseholders include a variety of complementary medical tenants, most of whom are on lengthy triple-net leases.
Battle Creek Medical Office Building is located in a medical office park adjacent to the newly completed 65,000-square-foot Borgess Health Park. Medical services at the park include outpatient surgical procedures in general surgery, gynecology, ophthalmology, otolaryngology, orthopedics, pain management, plastic surgery, podiatry and urology.
“This is an attractive acquisition that expands the Griffin-American Healthcare REIT IV portfolio and extends our reach in the state of Michigan,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “The property holds a Certificate of Need for Brookside Surgery Center and is in close proximity to Bronson Hospital – Battle Creek and Borgess Health Park, which both may help to ensure the long-term stability of the investment.”
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 February 24, 2017, had raised approximately $149.1 million in investor equity. The company’s portfolio consists of 13 medical office buildings and senior housing facilities purchased for a total of approximately $146 million.
