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Griffin-American Healthcare REIT IV Acquires Medical Office Building Near Atlanta
ATLANTA, Ga. (June 15, 2017) — American Healthcare Investors and Griffin Capital Company, LLC, the co-sponsors of Griffin-American Healthcare REIT IV, Inc., announced today that the REIT has acquired Lawrenceville Medical Office Building in the Atlanta suburb of Lawrenceville, Georgia.
Built in 2005, the approximately 31,000-square-foot Lawrenceville Medical Office Building is currently 100 percent absolute net leased to Gwinnett Cardiology Services, L.L.C. through May 2023 with 3 percent annual rent escalators and four five-year renewal options. The lease is guaranteed by Gwinnett Health System, Inc., the owner of Gwinnett Hospital System, Inc. which operates the nearby Gwinnett Medical Center — Lawrenceville, which includes 353 acute care beds. Gwinnett Hospital System enjoys an A3 credit rating from Moody’s Investors Service and an A+ credit rating from Fitch Ratings.
“Lawrenceville Medical Office Building is a modern, Class A building with quality finishes located near one of the largest hospitals in the region,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “We especially appreciate the single-tenant lease that is guaranteed by an investment grade credit health system, which we believe adds extra value to this property.”
Lawrenceville Medical Office Building was acquired from Salem Gwinnett Properties Associates LLC, an unaffiliated third party represented by Lee Asher and Chris Bodnar of CBRE, Inc. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand, borrowings under its revolving line of credit with Bank of America, N.A. and KeyBank, National Association, and through the assumption of an existing loan totaling approximately $8 million.
Griffin-American Healthcare REIT IV purchased its first property in June 2016 and has since acquired a portfolio of 22 medical office buildings and senior housing facilities for an aggregate contract purchase price of approximately $272 million.
Posted in Press Release on Jun 14, 2017