American Healthcare Investors and Griffin Capital Company, LLC, the co-sponsors of Griffin-American Healthcare REIT IV, Inc., announced today that the REIT has acquired a portfolio of skilled nursing facilities located throughout the state of Missouri for $88.2 million.
Missouri Skilled Nursing Facility Portfolio is comprised of eight facilities totaling 1,112 licensed beds and approximately 385,000 square feet. The portfolio is 100 percent master leased to an entity affiliated with Reliant Care Management Group, L.L.C. under a 15-year absolute net lease with two 10-year renewal options. The lease includes annual rent escalators tied to the consumer price index with a floor of 2 percent and a cap of 3 percent.
“Missouri Skilled Nursing Facility Portfolio is an exceptional addition to the Griffin-American Healthcare REIT IV portfolio,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “The facilities enjoy high bed occupancy and 1.8 times year one rent coverage. Additionally, Reliant Care Management is one of the premier skilled nursing operators in the state of Missouri and a strong new partner for the REIT.”
The portfolio of skilled nursing facilities was acquired from affiliates of Reliant Care Management Group, an unaffiliated third party represented by Mitchell Stern and Paul Hoffman of Dresner Partners. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand and borrowings under its revolving line of credit with Bank of America, N.A. and Keybank, National Association.
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Griffin-American Healthcare REIT IV also recently acquired Glendale Medical Office Building, an approximately 43,000-square-foot medical office building located in the Milwaukee suburb of Glendale, Wisconsin, for $7.6 million. With an occupancy of approximately 80 percent, this multi-tenant medical office building is physically attached to Columbia St. Mary’s River Woods Outpatient Center on both floors of the building and approximately 75 percent of the property’s rentable square footage is backed by some form of lease guaranty. All tenant leases of Glendale Medical Office Building are triple net and include annual rent escalators of 2 percent to 3 percent. The REIT also recently completed the acquisition of a 6 percent interest in a joint venture that owns approximately 97 percent of Trilogy Investors, LLC, the parent company of Trilogy Health Services LLC, for $48 million in cash, based on an estimated asset value of $93.2 million less the pro rata share of debt in the joint venture. Trilogy is a leading owner-operator of purpose-built integrated senior healthcare campuses throughout the states of Indiana, Ohio, Michigan and Kentucky.
Additionally, on Sept. 28, 2018, the REIT entered into an amendment with Bank of America, N.A., as administrative agent, and the subsidiary guarantors and lenders, on its existing $200 million revolving line of credit and term loan to expand its borrowing capacity by $150 million, to a maximum principal amount of $350 million.
Griffin-American Healthcare REIT IV purchased its first property in June 2016 and to date, has acquired a 3.4 million-square-foot portfolio of 58 medical office buildings, senior housing facilities and skilled nursing facilities located in 20 states, in addition to an interest in a joint venture which owns or operates a portfolio of integrated senior health campuses and ancillary businesses, for an aggregate contract purchase price of approximately $807.6 million. Additionally, the company is pursuing approximately $226.5 million in additional pending acquisitions1 which would result in a total portfolio of approximately 98 healthcare buildings located in 22 states comprised of approximately 4.7 million square feet of gross leasable area upon the successful completion of these potential acquisitions.
(1) Comprised of prospective real estate acquisitions for which the company has executed letters of intent and/or purchase and sale agreements as of August 9, 2018. These prospective acquisitions are subject to substantial closing conditions and the satisfaction of other requirements as detailed in the agreements. Accordingly, the closing of some or all of these pending transactions may not occur.
Date: October 8, 2018
Source: Bizjournals