Griffin-American Healthcare REIT IV Acquires Medical Office Building Near Seattle
August 1, 2018 | James Sprow | Blue Vault
American Healthcare Investors and Griffin Capital Company, LLC, the co-sponsors of Griffin-American Healthcare REIT IV, Inc., announced on July 31 that the REIT has acquired an approximately 55,000-square-foot medical office building in the Seattle suburb of Edmonds, Washington for $23.5 million.
Built in 1991, Edmonds Medical Office Building underwent an extensive renovation and expansion in 2007 that enlarged the building by nearly 14,000 square feet. At the time of acquisition, the building was 100 percent leased to nine tenants, including Virginia Mason Health System, which leases approximately 60 percent of the building, and Swedish Health Services, a member of Providence St. Joseph Health, the largest not-for-profit healthcare provider in the Greater Seattle area, which leases approximately 12 percent of the building. The 217-bed Swedish Edmonds hospital campus is located approximately one-quarter mile from Edmonds Medical Office Building.
“Edmonds Medical Office Building is strategically located within a thriving medical corridor in Greater Seattle and is fully leased to multiple tenants, including some of the largest health systems in the region,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “Additionally, the building is in close proximity to one of the area’s busiest hospitals and enjoys a healthy average remaining lease term of approximately eight years. Considering all of these factors, we believe Edmonds Medical Office Building is an exceptional addition to the Griffin-American Healthcare REIT IV portfolio.”
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.
Griffin-American Healthcare REIT IV purchased its first property in June 2016 and, as of the date of acquisition of Edmonds Medical Office Building, has since acquired a 2.9 million-square-foot portfolio of 48 medical office buildings, senior housing facilities and skilled nursing facilities located in 19 states for an aggregate contract purchase price of approximately $610.6 million. Additionally, the company is pursuing approximately $420.4 million in additional pending acquisitions 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. As of June 30, 2018, the company’s portfolio has a weighted average remaining lease term of 8.8 years and leased percentage of 95.1 percent, excluding its senior housing – RIDEA facilities.
Blue Vault reported for Q1 2018 that the REIT had an offering price per share as of April 11, 2018, of $9.65 for Class I shares and $10.05 for Class T shares. Its cash distributions were at an annualized rate of 6.00% for Class I and 6.51% for Class T shares, net of class-specific fees.
The REIT commenced its IPO on February 16, 2016. As of July 2, 2018, the REIT had received and accepted subscriptions in the offering for 49,696,557 shares of Class T common stock, or approximately $496,821,000, and 3,176,398 shares of Class I common stock, or approximately $29,539,000, excluding shares of its common stock issued pursuant to the DRIP.
Sources: SEC, Blue Vault
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