Griffin-American Healthcare REIT IV Acquires Skilled Nursing Facilities Portfolio for $88.2 Million
October 5, 2018 | James Sprow | Blue Vault
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.”
Griffin-American HealthcareREIT 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.
Griffin-American Healthcare REIT IV purchased its first property in June 2016 and to date, has acquired a 3.4million-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.
1Comprised 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.
Source: Griffin-American Healthcare REIT IV Press Release
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