NEWPORT BEACH, CALIF. — Griffin-American Healthcare REIT II has purchased the 13-building Pacific Northwest Senior Care Portfolio and seven medical office buildings for $103 million. American Healthcare Investors and Griffin Capital Corp. co-sponsor Griffin-American Healthcare REIT II.
“We seek to acquire properties that provide multiple levels of diversification to Griffin-American Healthcare REIT II,” says Danny Prosky, principal of American Healthcare Investors and president and COO of the REIT. “These latest acquisitions are a good example of this. They add geographic and asset diversification to an already substantial nationwide portfolio of healthcare-related properties.”
The Pacific Northwest Senior Care Portfolio includes eight skilled nursing facilities and five assisted living facilities totaling approximately 369,000 square feet in Washington and Oregon. Regency Pacific Management has a master lease for the portfolio through 2025.
Griffin-American Healthcare REIT II acquired the portfolio from Regency Pacific-affiliated entities. Don Ambrose and Chris Urban of Ambrose Capital Group represented the seller of the portfolio in the transaction. The REIT financed the purchase with $45 million in borrowings under its unsecured line of credit with Bank of America and used cash on hand for the remaining sum.
The medical office buildings total 199,000 square feet. The properties include:
– The 47,000-square-foot Urbana Medical Office Building in Urbana, Ill.
– The 35,000-square-foot Naperville Medical Office Building in Naperville, Ill.
– The 9,000-square-foot Killeen Medical Office Building in Killeen, Texas
– The 41,000-square-foot Temple Medical Office Building in Temple, Texas
– The 16,000-square-foot Rowlett Medical Office Building in Rowlett, Texas
– The 31,000-square-food Heritage Medical Office Plaza in Shelbyville, Tenn.
– The 20,000-square-foot Mountainside Medical Building III in Jasper, Ga.
The Illinois properties were purchased from HSA Primecare, which was represented by Savills. Caddis Partners, represented by Cain Brothers, sold the Texas properties. The Tennessee property was purchased from an undisclosed third party represented by Clinical Property Advisors. Mountainside Medical Developers LLC sold the Georgia property. Chris Bodnar and Lee Asher of CBRE Group represented the seller.
Griffin-American Healthcare REIT II financed the purchase of the healthcare properties with $14 million of existing debt, $21.5 million in borrowings under its line of credit with Bank of America and cash on hand.
Currently, the REIT’s portfolio includes 110 buildings, valued at approximately $925 million.
— Savannah Duncan