FOR IMMEDIATE RELEASE
Contact: Damon Elder
American Healthcare Investors Facilitates Acquisition of 20 Buildings for More Than $100 Million on Behalf of Griffin-American Healthcare REIT II
Eight skilled nursing facilities, five assisted living facilities and seven medical office buildings added to portfolio
NEWPORT BEACH, Calif. (Aug. 29, 2012) – American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT II, Inc., announced today the acquisition of 13-buildings known as the Pacific Northwest Senior Care Portfolio, as well as an additional seven medical office buildings located in Illinois, Texas, Tennessee and Georgia by the REIT for an aggregate purchase price of approximately $103 million.
Currently, the REIT's portfolio totals 110 buildings valued at approximately $925 million, based on purchase price, diversified across 26 states. Since Jan. 1, 2012, the portfolio has grown by approximately 111 percent, based on purchase price, while maintaining leverage of 31.2 percent (total debt divided by total assets), as of June 30, 2012, among the lowest in the non-traded REIT industry, according to independent research provided by Blue Vault Partners LLC.
"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 Pacific Northwest Senior Care Portfolio consists of eight skilled nursing facilities and five assisted living facilities totaling 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.
The Pacific Northwest Senior Care Portfolio was acquired from Regency Pacific-affiliated entities, all of which are unaffiliated with Griffin-American Healthcare REIT II. Regency Pacific was represented by Don Ambrose and Chris Urban of Ambrose Capital Group, Inc. Griffin-American Healthcare REIT II 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 medical office buildings total approximately 199,000 square feet and are located in: Naperville and Urbana, Illinois; Temple, Killeen and Rowlett, Texas; Shelbyville, Tennessee; and Jasper, Georgia.
Urbana Medical Office Building is a three-story building constructed in 2003 consisting of approximately 47,000 square feet. The medical office building is located on the campus of, and physically connected to, Provena Covenant Medical Center in Urbana, Illinois and is currently 100 percent leased to three tenants, the largest of which is the medical center.
Naperville Medical Office Building is a two-story building constructed in 2004 consisting of approximately 35,000 square feet. The medical office building is connected to Naperville Surgical Hospital via a covered walkway and is currently 97 percent leased to six tenants.
The Urbana and Naperville properties were acquired from HSA Primecare, an unaffiliated third party represented by Savills LLC.
Killeen Medical Office Building is a single-story building constructed in 1988 with a renovation and expansion completed in 2007. The approximately 9,000-square-foot medical office building is currently 100 percent leased to Physicians of King’s Daughter through November 2024.
Temple Medical Office Building is a single-story building constructed in 1974 with a comprehensive renovation in 2004. The 41,000-square-foot medical office building is located on the campus of, and sits adjacent to, Children’s Hospital at Scott & White and is directly accessible via a covered walkway. The property is currently 100 percent leased to Physicians of King’s Daughter through April 2024.
Rowlett Medical Office Building is a single-story building constructed in 2005 consisting of approximately 16,000 square feet in the Dallas suburb of Rowlett. The medical office building is currently 100 percent leased to three tenants, including Texas Health Resources.
The Killeen, Rowlett and Temple properties were acquired from Caddis Partners, an unaffiliated third party represented by Cain Brothers.
Heritage Medical Office Plaza is a two-story, multi-tenant medical office building located on the campus of Heritage Medical Center in Shelbyville, Tennessee. Constructed in 2008, the approximately 31,000-squarefoot building is currently 100 percent leased to two tenants, including Community Health Systems, which owns and operates the 104-bed medical center.
Heritage Medical Office Plaza was acquired from an unaffiliated third party represented by Clinical Property Advisors.
Mountainside Medical Building III is a one-story medical office building constructed in 2011 adjacent to the 42-bed Piedmont Mountainside Hospital. The approximately 20,000-square-foot facility is currently 100 percent leased to three tenants, the largest of which is the adjacent hospital.
Mountainside Medical Building III was acquired from Mountainside Medical Developers LLC, an unaffiliated third party represented by Chris Bodnar and Lee Asher of CBRE, Inc.
The medical office building acquisitions were financed through the assumption of approximately $14.0 million of existing debt, $21.5 million in borrowings under Griffin-American Healthcare REIT II’s unsecured line of credit with Bank of America, N.A., and the remaining 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 and leverage (total debt divided by total assets) of 31.2 percent.
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 cosponsored by American Healthcare Investors and Griffin Capital Corporation. For more information regarding GriffinAmerican 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 Aug 29, 2012