Griffin-American Healthcare REIT IV Buys Georgia MOB Portfolio
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by Griffin Capital and American Healthcare Investors, has acquired the two-building Athens Medical Office Building Portfolio in Athens, Georgia, approximately 70 miles east of Atlanta. The REIT paid approximately $16.8 million for the portfolio, according to a filing with the Securities and Exchange Commission.
Built in 2007, the approximately 61,000-square-foot Athens Medical Office Building Portfolio is currently 98.5 percent leased to three tenants, with approximately 87 percent of the rentable square footage leased to St. Mary’s Health Care System Inc., a member of Trinity Health Inc., one of the largest Catholic healthcare delivery systems in the nation. The properties are located within seven miles of both St. Mary’s Hospital and Piedmont Athens Regional Medical Center.
“Athens Medical Office Building Portfolio enjoys an excellent location in the midst of a thriving community near two large hospitals,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “Particularly attractive from our point of view is the significant relationship the portfolio has with St. Mary’s Health Care System, which occupies the vast majority of these medical office buildings.”
Athens Medical Office Building Portfolio was acquired from Exchange Building 300 LLC and 316 LLC, both unaffiliated third parties. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand and borrowings under its revolving line of credit with Bank of America, N.A. and KeyBank, National Association.
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 16 medical office buildings and senior housing facilities purchased for a total of approximately $229 million.
