FOR IMMEDIATE RELEASE
Contact: Damon Elder
$1 Billion Milestone Reached by Griffin-American Healthcare REIT II
REIT acquires six buildings for $108.7 million, growing portfolio to 121 healthcare-related buildings valued at approximately $1.1 billion, based on purchase price
NEWPORT BEACH, Calif. (Oct. 1, 2012) – American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT II, Inc., announced today the acquisition of three Los Angeles-area hospitals and three medical office buildings located in Frisco, Texas and Jasper, Georgia by the REIT for an aggregate purchase price of approximately $108.7 million.
With the completion of these latest acquisitions, the REIT’s portfolio totals 121 buildings valued at approximately $1.1 billion, based on purchase price, diversified across 26 states. Since Jan. 1, 2012, the portfolio has grown by approximately 149 percent, based on purchase price, while maintaining leverage of approximately 27 percent (total debt divided by total assets), as of August 15, 2012, among the lowest in the non-traded REIT industry, according to independent research provided by Blue Vault Partners, LLC.
“Reaching the $1 billion mark in aggregate portfolio value, based on purchase price, is a key milestone for Griffin-American Healthcare REIT II,” said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT. “Size and scale can be very important in terms of real estate portfolio operations, efficiency and potential enhanced value of the REIT as a whole. The REIT has now grown to the size where it is one of the largest and most significant owners of healthcare-related real estate in the country.”
Griffin-American Healthcare REIT II’s most recent acquisitions include:
Los Angeles Hospital Portfolio
The Los Angeles Hospital Portfolio is comprised of three general acute care hospitals, consisting of a total of 416 beds across three campuses totaling approximately 296,000 square feet of clinical space. The portfolio includes: East Los Angeles Doctors Hospital, Memorial Hospital of Gardena and Coast Plaza Hospital in Norwalk, Calif. Each of the hospitals are master leased to operating affiliates of Avanti Hospitals, LLC, under a 15-year absolute net lease with two 10-year renewal options.
Los Angeles Hospital Portfolio was acquired from Avanti Hospitals, an unaffiliated third party represented by Kevin Roy of Healthcare Finance Partners. Griffin-American Healthcare REIT II financed the acquisition using $86.5 million in borrowings under its unsecured line of credit with Bank of America, N.A., and paid the remaining purchase price using cash on hand.
Frisco Medical Office Building – Frisco, Texas
Frisco Medical Office Building is a two-story building constructed in 2007 consisting of approximately 51,000 square feet in the Dallas-suburb of Frisco, Texas. The medical office building is currently 94 percent leased to multiple tenants, the largest of which is Texas Health Resources. The building is located adjacent to the newly constructed Forest Park Medical Center Frisco, a 50-bed, state-of-the-art acute care hospital.
Frisco Medical Office Building was acquired from Caddis Partners, an unaffiliated third party represented by Cain Brothers. Griffin-American Healthcare REIT II financed the acquisition using $14.6 million in borrowings under its unsecured line of credit with Bank of America, N.A., and paid the remaining purchase price using cash on hand.
Mountainside Medical Building I and II – Jasper, Georgia
Mountainside Medical Building I and II are each one-story medical office buildings totaling approximately 37,000 square feet on the campus of the 42-bed Piedmont Mountainside Hospital in Jasper, Georgia. The buildings are currently 100 percent leased to multiple tenants, the largest of which is the adjacent hospital. In August, Griffin-American Healthcare REIT II acquired neighboring Mountainside Medical Building III.
Mountainside Medical Building I and II were acquired from Ziegler Healthcare Real Estate Fund II, LLC, an unaffiliated third party represented by Chris Bodnar and Lee Asher of CBRE, Inc. Griffin-American Healthcare REIT II financed the acquisition through the assumption of an existing mortgage in the amount of approximately $6.3 million and paid the remaining purchase price using cash on hand.
As of June 30, 2012, the Griffin-American Healthcare REIT II property portfolio was 96.1 percent leased with a weighted average remaining lease term of approximately nine years.
About American Healthcare Investors LLC
American Healthcare Investors is an investment management firm that specializes in the acquisition and management of healthcare-related real estate, including medical office buildings, skilled nursing facilities, assisted living facilities and hospitals. The company was founded by nationally recognized real estate investment executives Jeff Hanson, Danny Prosky and Mathieu Streiff, who have completed in excess of $15 billion in aggregate acquisition and disposition transactions during their careers, approximately $5.5 billion of which has been healthcare-related real estate transactions. American Healthcare Investors is committed to providing investors with access to the potential benefits that healthcare-related real estate ownership can provide. For more information regarding American Healthcare Investors, please visit www.AmericanHealthcareInvestors.com.
About Griffin-American Healthcare REIT II, Inc.
Griffin-American Healthcare REIT II, Inc. is a real estate investment trust organized to invest in a diversified portfolio of real estate properties, focusing primarily on medical office buildings and healthcare-related facilities. The REIT is co-sponsored by American Healthcare Investors and Griffin Capital Corporation. For more information regarding Griffin-American Healthcare REIT II, please visit www.HealthcareREIT2.com.
About Griffin Capital Corporation
Griffin Capital Corporation is a privately-owned real estate company headquartered in Los Angeles. Led by senior executives each with more than two decades of real estate experience collectively encompassing over $14.0 billion of transaction value and more than 400 transactions, Griffin Capital and its affiliates have acquired or constructed over 17 million square feet of space since 1996. Griffin Capital and its affiliates currently own and manage a portfolio consisting of over 11.1 million square feet of space, located in 27 states and representing over $1.7 billion in asset value. Additional information about Griffin Capital is available at www.griffincapital.com.
Posted in Press Release on Oct 01, 2012