rent growth, but growth nonetheless.
NEWPORT BEACH, CA-Griffin-American Healthcare REIT II Inc., sponsored by American Healthcare Investors and Griffin Capital Corp., has entered into a $200 million unsecured revolving line of credit. The credit line, which may be increased to up to $350 million, was arranged by Merrill Lynch, Pierce Fenner & Smith Inc. and Keybanc Capital Markets.
Jeff Hanson, principal of American Healthcare and chairman/CEO of the trust, said in a statement that the new line of credit will equip the REIT to continue the pursuit of acquisitions. In the past five months, the trust has expanded its portfolio of healthcare-related properties by more than 60%, based on purchase price, to about $724 million in 78 buildings. The portfolio is about 96.7% occupied.
The new credit line replaces two secured lines of credit totaling $116.5 million previously provided by Bank of America and Keybank. Bank of America is serving as administrative agent on the new line, and Keybank is acting as syndication agent. The new line matures on June 5, 2015, but may be extended by one year.
Danny Prosky, president and COO of the REIT, tells GlobeSt.com that he expects that healthcare real estate deals will continue to be active throught the second half of the year, even as other property markets are looking at concerns about the Euro debt crisis and the election-year uncertainties.
“Despite the choppy job market, healthcare jobs continued to grow, and rents and occupancies continue to hold up,” he says. “I don’t see any reason why that would change. I see demand for healthcare services continuing to increase. Domestic demand drives the healthcare market, whether or not you get sick doesn’t depend a whole lot on the European debt market.”