NEWPORT BEACH, CA-Griffin-American Healthcare REIT II Inc. has just grown its portfolio by six assets in a deal valued at $108.7 million. According to a company statement, that pushes the value of the REIT’s portfolio to $1.1 billion in 121 buildings across 26 states.
The latest additions include East Los Angeles Doctors Hospital, Memorial Hospital of Gardena and Coast Plaza Hospital in Norwalk, CA. These acute-care facilities, all part of the Los Angeles Hospital Portfolio purchased from Avanti Hospitals, consist of 416 beds and total 296,000 square feet of clinical space. Kevin Roy of Healthcare Finance Partners did the deal. Griffin-American financed the acquisition using $86.5 million from its unsecured line of credit with Bank of America, N.A. and paid the remaining in cash.
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The REIT, which is co-sponsored by American Healthcare Investors and Griffin Capital Corp., also purchased Frisco (TX) Medical Office Building, consisting of 51,000 square feet that is 94% leased to multiple tenants. The deal was financed through $14.6 million from the same line of credit and cash. Caddis Partners was the seller, represented by Cain Brothers.
Finally, the REIT picked up Mountainside Medical Building I and II, in Jasper, GA. The 37,000-square-foot complex is fully leased to multiple tenants. In August, Griffin-American acquired neighboring Mountainside Medical Building III. Ziegler Healthcare Real Estate Fund II LLC was the seller, represented by Chris Bodnar and Lee Asher of CBRE. Funding came from the assumption of an existing $6.3-million mortgage plus cash.
“Reaching the $1 billion mark in aggregate portfolio value, based on purchase price, is a key milestone for Griffin-American Healthcare REIT II,” said Danny Prosky, a principal of American Healthcare Investors and president and COO of the REIT, in a company statement. “Size and scale can be very important in terms of real estate portfolio operations, efficiency and potential enhanced value of the REIT as a whole. The REIT has now grown to the size where it is one of the largest and most significant owners of healthcare-related real estate in the country.”