FOR IMMEDIATE RELEASE
Contact: Damon Elder
American Healthcare Investors Facilitates Acquisition of Five Medical Office Buildings on Behalf of Griffin-American Healthcare REIT II
Acquisitions in Colo., Ga., Ind. and Mich. increases portfolio to $1.42 billion
NEWPORT BEACH, Calif. (April 3, 2013) – American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT II, Inc., announced today the acquisition of five medical office buildings by the REIT for an aggregate purchase price of approximately $46 million. The acquired buildings are near Denver, Colorado; Atlanta, Georgia; Indianapolis, Indiana; and Detroit, Michigan.
The REIT’s portfolio currently totals 153 buildings valued at approximately $1.42 billion, based on purchase price, diversified across 28 states and all four clinical asset classes: medical office buildings, skilled nursing facilities, hospitals and assisted living facilities. Since Jan. 1, 2012, the portfolio has grown by approximately 223 percent, based on purchase price. As of Dec. 31, 2012, the Griffin-American Healthcare REIT II property portfolio was 96.6 percent leased with a weighted average remaining lease term of approximately 9.5 years and leverage (total debt divided by total assets) of 32.9 percent.
“A key component of our acquisition strategy for Griffin-American Healthcare REIT II is to purchase quality medical office buildings that are located on or near thriving hospital campuses and that enjoy strong affiliations with the nation’s best performing healthcare delivery systems,” explained Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT. “Each of these acquisitions meet these high standards and further strengthen our balanced portfolio of clinical healthcare real estate assets.”
Griffin-American Healthcare REIT II’s most recent acquisitions include:
St. Anthony North Medical Office Building II – Westminster, Colorado
St. Anthony North Medical Office Building II is a three-story, multi-tenant medical office building comprised of approximately 28,000 square feet adjacent to the 138-bed St. Anthony North Hospital in the Denver suburb of Westminster. The building is currently 89 percent leased to seven tenants, the largest of which is Centura Health, the operator of St. Anthony North Hospital and the region’s leading healthcare provider. This is the second medical office building affiliated with St. Anthony North Hospital acquired by Griffin-American Healthcare REIT II; in 2011, the REIT acquired a 60,000-square-foot medical office building located on the hospital campus. With this latest acquisition, Griffin-American Healthcare REIT II is now the owner of seven medical office buildings totaling approximately 280,000 square feet located in the northern Colorado cities of Greeley, Highlands Ranch and Westminster.
Ultima at Eagles Landing Medical Office Building – Stockbridge, Georgia
Ultima at Eagles Landing Medical Office Building is a two-story, 45,000-square-foot multi-tenant medical office building adjacent to the campus of the 215-bed Piedmont Henry Hospital in the Atlanta suburb of Stockbridge. Built in 2004, Ultima at Eagles Landing Medical Office Building is currently 100 percent leased to four tenants, the largest of which are Eagles Landing OB/GYN, an affiliate of the Piedmont Clinic, and Atlanta Heart Associates, one of southern Georgia’s leading providers of cardiology care. In total, 86 percent of the building is leased through June 2022.
Riverview Medical Arts Building – Noblesville, Indiana
Riverview Medical Arts Building is an approximately 44,000-square-foot medical office building in the Indianapolis suburb of Noblesville. Built in 2008, the two-story building is 100 percent leased to seven tenants, the largest of which is 154-bed Riverview Hospital, which leases nearly 59 percent of the building through December 2017 and is one of the largest employers in Hamilton County.
Eastern Michigan Medical Office Building Portfolio – Novi and West Bloomfield, Michigan
Eastern Michigan Medical Office Building Portfolio is comprised of two medical office buildings, Keystone Medical Center and West Oaks Medical Office Building, totaling approximately 94,000 square feet in the Detroit suburbs of Novi and West Bloomfield. Keystone is a three-story multi-tenant building located one mile from St. John Providence Park Hospital, a newly constructed 200-bed member of Ascension Health, the nation’s third-largest healthcare provider. West Oaks is a two-story multi-tenant medical office building located 2.5 miles from the Henry Ford West Bloomfield Hospital campus, a 191-bed acute care facility and member of the Henry Ford Health System.
St. Anthony North Medical Office Building II was acquired directly from Centum Health Properties and the Colorado Group, unaffiliated third parties. Ultima at Eagles Landing Medical Office Building was acquired from an unaffiliated third party represented by Paul Zeman of Bull Realty. Riverview Medical Arts Building was acquired directly from an entity affiliated with Cornerstone Companies Inc., an unaffiliated third party. Eastern Michigan Medical Office Building Portfolio was acquired from entities affiliated with RSM Development and Management of Southfield, Michigan, an unaffiliated third party represented by Spencer Coan of Ackerman & Company.
Griffin-American Healthcare REIT II financed the acquisitions through the assumption of $6.3 million of existing debt, $33.9 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 Riverview Medical Arts Building 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 $16 billion in aggregate acquisition and disposition transactions during their careers, approximately $6 billion of which has been healthcare-related real estate transactions. 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 650 transactions representing in excess of $16.0 billion in transaction value, Griffin Capital has acquired or constructed over 17 million square feet of space since 1996, and currently manages a portfolio of more than 13.4 million square feet located in 28 states, representing approximately $2.2 billion in asset value. For more information regarding Griffin Capital, please visit www.GriffinCapital.com.
Posted in Press Release on Apr 03, 2013