IRVINE, CA—American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT III, Inc., say that the REIT completed the acquisition of 18 healthcare properties in 11 states in the first quarter of the year.
Along with a collateralized debt instrument, the Q1 activity has an aggregate purchase price of $353.7 million. The acquisitions were comprised of 14 medical office buildings, three senior housing facilities, a surgical hospital and the aforementioned collateralized debt instrument.
“Griffin-American Healthcare REIT III remained very active on the acquisition front during the first quarter of the year, adding a diverse collection of healthcare properties to our rapidly growing portfolio,” said Danny Prosky, president, chief operating officer and one of the largest stockholders of the REIT. “In just six months' time, we have grown from approximately $41 million worth of assets to more than $631 million1 with a robust pipeline of acquisitions on the horizon.”
Additionally, the REIT has announced that it has executed letters of intent and/or purchase and sale agreements to acquire 30 additional healthcare-related buildings for an aggregate purchase price of approximately $509 million. These pending acquisitions are subject to customary closing conditions and the satisfaction of other requirements as detailed in the agreements.
Griffin-American Healthcare REIT III's First Quarter 2015 acquisitions include:
Orange Star Medical Portfolio, a five-building collection of healthcare facilities comprised of four medical office buildings and one surgical hospital located in Durango, CO, and the suburbs of Dallas and Houston. The approximately 183,000-square-foot portfolio is currently 96.8% leased to 27 tenants. The Orange Star Medical Portfolio was acquired directly from Caddis Partners, an unaffiliated third party.
North Carolina Assisted Living Portfolio, North Raleigh and Mooresville, NC, two of five facilities, comprised of 192 licensed beds. The facilities are operated by Carillon Assisted Living, LLC under a 15-year absolute net lease with two 10-year renewal options. North Carolina Assisted Living Portfolio was acquired from Carillon, an unaffiliated third party represented by Jason Ficken and Greg Throckmorton of Quadriga Partners.
Kingwood Medical Office Building Portfolio, Kingwood, TX, two medical office buildings totaling approximately 43,000 square feet located adjacent to the 278-bed Kingwood Medical Center to the northwest and the Memorial Hermann Kingwood Surgical Hospital to the southwest in the Houston suburb of Kingwood. The portfolio is 100% leased via triple net leases through March 2027 and December 2019, respectively. The portfolio was acquired directly from CKO Properties, LP and Houston Physician Real Estate Investments, LP, both unaffiliated third parties.
Mt. Juliet TN Medical Office Building, Mount Juliet, TN, a 100% leased medical office building is occupied by six tenants. The 196-bed Tristar Summit Medical Center is located approximately 5 miles to the west of Mt. Juliet TN Medical Office Building while the 245-bed University Medical Center lies approximately 14 miles to the east. Mt. Juliet was acquired from Providence West Medical Center, an unaffiliated third party represented by Joe Massa of Colliers International.
Griffin-American Healthcare REIT III completed the acquisitions using cash-on-hand, as well as the assumption of an existing loan totaling approximately $10 million tied to King of Prussia PA Medical Office Building, another of the aquired properties. Including these acquisitions, the Griffin-American Healthcare REIT III portfolio is comprised of 42 medical office buildings, hospitals, senior housing facilities and a collateralized debt instrument valued in excess of $631.4 million, based on aggregate purchase price.
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