IRVINE, CA—Griffin-American Healthcare REIT III is continuing its strong healthcare real estate acquisition activity by entering into an agreement to acquire a portfolio of medical-office buildings in New York, New Jersey, Massachusetts and Kentucky for $135 million. GlobeSt.com has learned that the seller is Kadima Medical Properties LLC.

American Healthcare Investors and Griffin Capital Corp., co-sponsors of the REIT, have announced its intention to acquire Independence Medical Office Building Portfolio, which is composed of five buildings totaling approximately 461,000 square feet in New York City; Verona and Morristown, NJ; Somerville, MA; and Southgate, KY. According to Danny Prosky, a principal of AHI and president and COO of the REIT, “The acquisition of this portfolio will significantly expand Griffin-American Healthcare REIT III in core urban areas located near major academic and healthcare institutions. The portfolio is strongly aligned with major healthcare providers and is more than 96% occupied.”

REIT executives declined to discuss with GlobeSt.com the appeal of the specific markets within the portfolio or anything else about the transaction because it is currently an open-offering period. We will update this story with more information as it becomes available.

Earlier this month, the REIT also entered into agreements to acquire Premier Medical Office Building, a 45,000-square-foot MOB in Novi, MI, for approximately $12 million; the Merion Building, a 73,000-square-foot MOB in King of Prussia, PA, for approximately $19 million; and Mount Olympia MOB Portfolio, composed of three MOBs in Columbus, OH; Mount Dora, FL; and Olympia Fields, IL, for approximately $16 million. These acquisitions, like the Independence portfolio, are subject to customary closing conditions and the satisfaction of other requirements as detailed in the agreements.

In addition, Griffin-American has completed a number of acquisitions since the beginning of September 2014, acquiring five healthcare-related buildings totaling more than 200,000 square feet for an aggregate purchase price of approximately $41 million. The acquisitions included three MOBs located in Wichita, KS; Lee's Summit, MS; and Fort Mill, SC, as well as two senior-housing facilities in Batesville and Cleveland, MS. Each of the buildings was acquired from unaffiliated third parties using cash on hand. As of Oct. 15, the Griffin-American Healthcare REIT III portfolio is composed of 10 buildings acquired for an aggregate purchase price of approximately $53 million.

As GlobeSt.com reported in August, Griffin-American Healthcare REIT III Inc. has entered into a $60-million revolving line of credit with Merrill Lynch; Pierce, Fenner & Smith Inc.; and KeyBanc Capital Markets as joint lead arrangers. The credit line may be increased up to $350 million upon meeting certain conditions, and the credit facility may be utilized to acquire, finance or refinance properties, as well as for other corporate purposes. Bank of America will serve as administrative agent, and KeyBank National Association will act as syndication agent.