FOR IMMEDIATE RELEASE
Contact: Damon Elder (949) 270-9207
$184 Million in Acquisitions Facilitated by American Healthcare Investors on Behalf of Griffin-American Healthcare REIT II
REIT portfolio reaches $1.325 billion in assets
NEWPORT BEACH, Calif. (Jan. 7, 2013) – American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT II, Inc., announced today the acquisition of 14 healthcare- related properties by the REIT for an aggregate purchase price of approximately $183.6 million. The acquisitions, each of which was completed during December 2012, include a total of nine medical office buildings and five assisted living facilities located in California, Florida, North Carolina, Indiana and Alabama. Including these properties, in total during the fourth quarter, Griffin-American Healthcare REIT II acquired 18 buildings for an aggregate purchase price of $231.2 million.
During the year 2012, the REIT's portfolio grew by approximately 202 percent, based on aggregate purchase price, with $886 million in total acquisitions. As a result, the portfolio now totals 139 buildings acquired for approximately $1.325 billion, diversified across 27 states. As of Sept. 30, 2012, the Griffin-American Healthcare REIT II property portfolio was 96.8 percent leased with a weighted average remaining lease term of approximately 9.4 years and portfolio-level leverage (total debt divided by total assets) of 32.8 percent.
"It may be an understatement to say that 2012 was a record year on many levels for Griffin-American Healthcare REIT II," said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT. "Our portfolio of medical office buildings, hospitals, skilled nursing facilities and assisted living facilities more than tripled during the year, based on purchase price, and became even more broadly diversified in terms of geography, asset type and revenue sources."
Griffin-American Healthcare REIT II's most recent acquisitions include:
Central Indiana Medical Office Portfolio I
Central Indiana Medical Office Portfolio I is comprised of five buildings totaling approximately 182,000 square feet of medical office space located in the Indiana cities of Indianapolis, Lafayette and Carmel. The portfolio has an occupancy rate of 90.2 percent, leased to a total of 18 tenants primarily comprised of area hospitals and large physician groups. The portfolio was acquired from entities affiliated with Cornerstone Companies Inc., an unaffiliated third party.
North Carolina Assisted Living Portfolio
North Carolina Assisted Living Portfolio consists of five assisted living facilities totaling approximately 183,000 square feet and 480 beds located in Fayetteville, Fuquay-Varina, Indian Trail, Knightdale, and Lincolnton, North Carolina. The properties were built between 2008 and 2011, and are 100 percent master leased to operating entities affiliated with Carillon Assisted Living LLC, under a 15-year absolute net lease with two five-year renewal options. Carillon Assisted Living was represented in the sale-leaseback transaction by Jason Ficken of Quadriga Partners.
Sutter North Bay Health Plaza – Santa Rosa, California
Sutter North Bay Health Plaza is a three-story, multi-tenant medical office building consisting of approximately 102,000 square feet in the Northern California city of Santa Rosa. The property, currently 90 percent leased, serves as an outpatient clinic for Sutter Health, one of the largest not-for-profit health systems in Northern California. The medical office building is located approximately three miles from the 135-bed Sutter Medical Center of Santa Rosa and approximately two miles from the site of a $284 million replacement hospital currently under construction and expected to be completed in October 2014. Sutter North Bay Health Plaza was acquired from Urdang/Sequoia Creek Holdings, an unaffiliated third party represented by Vince Schwab of Marcus & Millichap.
Northside Medical Office Building – St. Petersburg, Florida
Built in 2004, Northside Medical Office Building is a three-story property totaling approximately 53,000 square feet on the campus of Hospital Corporation of America's Northside Hospital in St. Petersburg, Florida. The multi-tenant building is leased to eight tenants, the largest of which is the hospital, which leases more than 50 percent of the property. Northside Medical Office Building was acquired from Northside Medical Plaza LLC, an unaffiliated third party represented by Philip Faircloth of RJ King Associates.
Physician's Office Pavilion at WakeMed North – Raleigh, North Carolina
Physician's Office Pavilion at WakeMed North is a four-story, multi-tenant medical office building consisting of approximately 77,000 square feet of rentable square feet in Raleigh, North Carolina. The building is on the campus of WakeMed North Healthplex, with direct access to the facility via covered walkway. WakeMed Health System, one of the region's largest not-for-profit health systems and the owner of WakeMed North Healthplex, has announced plans to expand the facility into a 61-bed acute care hospital. The planned expansion is expected to cost approximately $62 million and be completed by early 2015.
Physician's Office Pavilion at WakeMed North is currently 100 percent leased to 13 tenants, the largest of which is WakeMed Health Systems, which leases 66 percent of the building. More than 55 percent of the medical office building's square footage is subject to long-term triple net leases that expire between 2019 and 2023. The property was acquired from Jamestown North MOB LP, an unaffiliated third party represented by Chris Bodnar and Lee Asher of CBRE, Inc.
Bessemer Medical Office Building – Bessemer, Alabama
Built in 2006, Bessemer Medical Office Building is a five-story, multi-tenant medical office building built in 2006 totaling approximately 100,000 square feet on the Medical West hospital campus in the Birmingham suburb of Bessemer, Alabama. The property is physically connected to the 300-bed hospital via two sky- bridges and is currently 98 percent leased to 14 tenants, including Medical West, which leases approximately 45 percent of the building. Bessemer Medical Office Building was acquired from the Johnson Development subsidiary of Med West MOB LLC, an unaffiliated third party represented by Sean Tu and Mike Davis of Cain Brothers.
Griffin-American Healthcare REIT II financed the acquisitions using $133.3 million in borrowings under its unsecured line of credit with Bank of America, N.A., cash on hand and units of limited partnership of Griffin- American Healthcare REIT II Holdings, LP, the REIT's operating partnership. The units of the operating partnership were issued to the sellers of Central Indiana MOB Portfolio I as partial payment for the acquisition.
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
Los Angeles-based Griffin Capital Corporation has a sixteen-year track record sponsoring real estate investment vehicles and managing institutional and retail equity capital. Led by senior executives, each with more than two decades of real estate experience, who have collectively closed more than 400 transactions representing over $14.0 billion in transaction value, Griffin Capital has acquired or constructed over 11 million square feet since 1996, and currently manages a portfolio of more than 8.5 million square feet located in 13 states, representing approximately $1 billion in asset value. For more information regarding Griffin Capital, please visit www.GriffinCapital.com.
Posted in Press Release on Jan 07, 2013