Griffin-American Healthcare REIT II, Inc., announced on Wednesday the acquisition of a 13-property portfolio of senior care communities along with seven medical office buildings (MOBs) located in Illinois, Texas, Tennessee, and Georgia for a total of approximately $103 million.
“We seek to acquire properties that provide multiple levels of diversification to Griffin-American Healthcare REIT II,” said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT. “These latest acquisitions are a good example of this – they add geographic, asset and payor mix diversification to an already substantial nationwide portfolio of healthcare-related properties.”
The senior care properties, collectively called the Pacific Northwest Senior Care Portfolio, consists of eight skilled nursing facilities and five assisted living communities totally approximately 369,000 square feet and 838 licensed beds located throughout Washington and Oregon. The portfolio is master-leased through 2025 by Regency Pacific Management.
Griffin-American Healthcare REIT acquired the portfolio from Regency Pacific-affiliated entities, all of which are unaffiliated with the REIT. Don Ambrose and Chris Urban of Ambrose Capital Group, Inc. represented Regency Pacific.
The REIT financed the acquisition using $45 million in borrowings under its unsecured line of credit with Bank of America, N.A., and the remaining using cash on hand.
The seven MOBs total nearly 200,000 square feet and are located in Illinois, Texas, Tennessee, and Georgia.
Griffin-American Healthcare REIT II has grown by about 111% since the beginning of the year, based on purchase price, while maintaining leverage of 31.2% as of June 30, 2012—among the lowest in the non-traded REIT industry, according to independent research conducted by Blue Vault Partners LLC.
Written by Alyssa Gerace