FOR IMMEDIATE RELEASE
Contact: Damon Elder (949) 270-9207
American Healthcare Investors Facilitates Acquisitions in Colorado, Louisiana and Texas on Behalf of Griffin-American Healthcare REIT II
REIT portfolio grows to nearly $1.4 billion in assets
NEWPORT BEACH, Calif. (March 6, 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 $47 million. The acquired buildings are located in Greeley, Colorado; Ruston, Louisiana; and Abilene, Texas.
Currently, the REIT's portfolio totals 148 buildings valued at approximately $1.4 billion, based on purchase price, diversified across 27 states. Since Jan. 1, 2012, the portfolio has grown by approximately 213 percent, based on purchase price. 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 leverage (total debt divided by total assets) of 32.8 percent.
"Since the beginning of 2012, our nationwide portfolio of medical office buildings, hospitals, skilled nursing facilities and assisted living facilities has more than tripled, based on aggregate acquisition price," said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT. "With each acquisition, Griffin-American Healthcare REIT II becomes more broadly diversified as we execute our strategic plan to build a well-balanced portfolio of clinical healthcare-related real estate."
Griffin-American Healthcare REIT II's most recent acquisitions include:
A&R Medical Office Building Portfolio – Abilene, Texas and Ruston, Louisiana
A&R Medical Office Building Portfolio is comprised of two single-tenant, physician clinic-occupied medical office buildings totaling approximately 183,000 square feet in Abilene, Texas and Ruston, Louisiana. The buildings are located on the campuses of the 231-bed Abilene Regional Medical Center and the 159-bed Northern Louisiana Medical Center. Both medical centers are owned by Community Health Systems, one of the nation's largest operators of general acute care hospitals.
The Abilene building is a single-story, 71,000-square-foot facility master leased to the Abilene Diagnostic Clinic, the city's largest multi-specialty physician group. The 112,000-square-foot Ruston building serves as the primary practice location of The Green Clinic, the largest multi-specialty physician group in Ruston. Both tenants lease their respective buildings subject to 15-year absolute net leases, each of which feature a remaining term in excess of 10 years and annual rent escalations.
Greeley Northern Colorado Medical Office Building Portfolio – Greeley, Colorado
The three-building, multi-tenant Greeley Northern Colorado Medical Office Building Portfolio totals approximately 99,000 square feet adjacent to the 378-bed North Colorado Medical Center, a member hospital of Banner Health System, one of the nation's largest non-profit health systems. The multi-tenant medical office building portfolio is currently 93 percent leased to three tenants, the largest of which is University of Colorado Health, which occupies more than 90 percent of the portfolio under a long-term lease expiring in 2020. With this latest acquisition, Griffin-American Healthcare REIT II is now the owner of six medical office buildings totaling more than 250,000 square feet located in the northern Colorado cities of Greeley, Highlands Ranch and Westminster.
A&R Medical Office Building Portfolio was acquired from an affiliate of Duke Realty, an unaffiliated third party represented by Cain Brothers RE LLC. Greeley Northern Colorado Medical Office Building Portfolio was acquired from Concordia Company of Greeley, LLP, an unaffiliated third party represented by Craig Hau and Kyle Lundy, CCIM, of Sperry Van Ness. Griffin-American Healthcare REIT II financed the acquisitions using $44 million in borrowings under its unsecured line of credit with Bank of America, N.A., and the remainder using cash on hand.
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.
This release contains certain forward-looking statements with respect to the company's broadly diversified healthcare real estate portfolio and its ability to execute its strategic plan to build a well-balanced portfolio of clinical healthcare- related real estate. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: our strength and financial condition; uncertainties relating to changes in general economic and real estate conditions; uncertainties related to the availability of healthcare-related real estate for acquisition and the diversity of such assets; uncertainties regarding changes in the healthcare industry and healthcare legislation; the uncertainties relating to the company's ability to acquire additional healthcare-related real estate; and other risk factors as outlined in our company's periodic reports, as filed with the U.S. Securities and Exchange Commission. Forward-looking statements in this document speak only as of the date on which such statements were made, and undue reliance should not be placed on such statements. We undertake no obligation to update any such statements that may become untrue because of subsequent events.
Posted in Press Release on Mar 05, 2013