American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT II, Inc., announced the acquisition of a three-building portfolio of senior care facilities in Massachusetts by the REIT for $24.35 million.
The Massachusetts portfolio is comprised of skilled nursing and assisted living facilities in Boston and Dalton, totaling 201 beds and approximately 104,000 square feet of space. The portfolio is master leased to Trinity Health Systems, LLC under an absolute net lease through 2027 with 3.0% annual rent escalations. The lease includes four 10-year renewal options.
Griffin-American Healthcare REIT II acquired the portfolio directly from Merrimack Health Group, Inc., an unaffiliated third party.
The REIT financed the off-market acquisition with $22 million in borrowings under its unsecured line of credit with Bank of America, N.A., and used cash on hand for the remaining amount.
“These latest acquisitions further expand and diversify the portfolio of Griffin-American Healthcare REIT II, which has nearly tripled in size since the start of 2012, based on aggregate purchase price,” said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT.
As of Sept. 30, 2012, the REIT’s property portfolio was 96.8% leased. American Healthcare Investors and Griffin Capital Corporation also announced the acquisition of Bellaire Medical Center, a 216-bed long-term acute care center and behavioral rehabilitation hospital for $23.25 million.
Written by Alyssa Gerace