Griffin-American Healthcare REIT IV to Purchase 24 Healthcare Facilities for $78.5 Million

September 19, 2018 | James Sprow | Blue Vault

Griffin-American Healthcare REIT IV entered into an amended purchase and sale agreement with a number of LLCs including Midwest Health Properties, in connection with the purchase of certain real property and certain other property and interests relating to the use and operation of 24 healthcare facilities, located in Illinois and Missouri, or Songbird SNF Portfolio, for a contract purchase price of $78,500,000, plus closing costs. Songbird SNF Portfolio, consisting of approximately 625,000 square feet of gross leasable area and 2,104 licensed beds, includes 21 skilled nursing facilities and one assisted living facility located in Illinois and two skilled nursing facilities located in Missouri, and will be 100% leased at the time of acquisition. The REIT anticipates closing the acquisition in the fourth quarter of 2018.

For each property acquired by the REIT, it pays the advisor or one of its affiliates acquisition fees of up to 4.50% of the contract purchase price, including any contingent or earn-out payments that may be paid.  These acquisition fees consist of 2.25% or 2.00% base acquisition fee for real estate and real estate investments, respectively, and an additional 2.25% contingent advisor payment.  The contingent advisor payment allows the advisor to recoup the portion of the dealer manager fee and other organizational and offering expenses funded by the advisor. 

As of June 30, 2018, the REIT owned a portfolio of 45 buildings with 2.73 billion square feet. During Q2 2018 the REIT acquired three properties for an estimated $47.4 million. The REIT had a low debt-to-assets ratio of 16.0% and a weighted average interest rate on debt of 3.95%. The REIT was paying distributions at the annualized rates of 6.00% on Class T shares and 6.51% on Class I shares, net of stockholder servicing fees. The public offering had raised $542.4 million through June 30, 2018. Its public offering is currently planned to close on February 16, 2019.

Sources:  SEC, Blue Vault

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