A new real estate investment trust (REIT) with a familiar name is making its way into the senior housing scene, getting the go-ahead for a $3.15 billion initial public offering.
Griffin-American Healthcare REIT IV, Inc. is the latest entity from one of the largest public non-traded REIT sponsors. The registration statement for its initial offering of common stock was declared effective by the Securities and Exchange Commission (SEC) on February 16, 2016. The minimum offering is $2 million in common stock.
The entity intends to qualify as a REIT and invest in health care real estate assets, including medical office buildings, senior housing facilities, skilled nursing facilities and hospitals. The newly-formed REIT will not be traded on a public exchange.
The offering will be up to 300,000,000 shares of the REIT’s common stock for sale at $10.00 per share. Up to an additional 15,789,474 shares of common stock for issuance will be offered under its distribution reinvestment plan at $9.50 per share in a publicly registered, non-traded offering.
Los Angeles-based investment and asset management company Griffin Capital is the co-sponsor for the entity, which is registering as a Maryland corporation. Griffin-American Healthcare REIT IV is externally managed by Griffin-American Healthcare REIT IV Advisor LLC, its advisor and affiliate. American Healthcare Investors (AHI), which manages an international health care real estate portfolio of more than $8 billion, serves as co-sponsor of the entity.
In February 2014, a similar Griffin Capital entity in a joint venture agreement with AHI—Griffin-American Healthcare REIT III—announced that the SEC had declared its registration statement effective, for an initial public offering of about $1.9 billion in common stock. The REIT met its initial minimum offering in early May of 2014 and acquired its first building the next month.
As of the third quarter of 2015, its portfolio had grown to more than $1.1 billion, and it had another $1 billion in pending acquisitions, the company stated. The REIT has a 70% stake in a $1.125 billion joint venture acquisition of Trilogy Health Services LLC, which was announced in the third quarter.
A previous investment vehicle, Griffin-American Healthcare REIT II, merged with NorthStar Realty Finance Corp. (NYSE: NRF) in late 2014, four years after making its first acquisition. The transaction was valued at $4 billion.
Written by Amy Baxter