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Griffin-American Healthcare REIT IV Acquires Medical Office Building Near Detroit
DETROIT (May 31, 2018) – 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 Southfield Medical Office Building, located in the Detroit suburb of Southfield, Michigan, for $16.2 million.
The approximately 85,000-square-foot medical office building was approximately 96 percent leased at the time of acquisition to multiple tenants, including Wayne State University Physician Group, which leases 42 percent of the building, and affiliates of Beaumont Health System, which lease 15 percent of the building.
Wayne State University Physician Group, with more than 2,000 doctors and approximately 1 million patients annually, is among the largest non-profit physician groups in Michigan and has professional associations with several of the region’s leading health systems, including Beaumont Health System, Detroit Medical Center, Henry Ford Health System and St. John Providence Health System.
“Southfield Medical Office Building is located within a densely populated metropolis with significant healthcare demands and in close proximity to a number of the region’s busiest hospitals,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “Additionally, the building is occupied by one of the largest physician groups in the state, as well as one of its prominent hospital systems, making this a very attractive addition to the growing Griffin-American Healthcare REIT IV portfolio.”
Southfield Medical Office Building was acquired from Universal Properties FPMC, LLC, an unaffiliated third party represented by Rich Deptula and Todd Hawley of Friedman Integrated Real Estate Solutions. 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, as well as through the assumption of an existing mortgage loan.
Griffin-American Healthcare REIT IV purchased its first property in June 2016 and, as of the date of acquisition of Southfield Medical Office Building, has since acquired a 2.7 million-square-foot portfolio of 45 medical office buildings, senior housing facilities and skilled nursing facilities located in 16 states for an aggregate contract purchase price of approximately $536.1 million. Additionally, the company is pursuing approximately $334.8 million in additional pending acquisitions1 which would result in a total portfolio of approximately 90 healthcare buildings located in 22 states comprised of approximately 4.3 million square feet of gross leasable area upon the successful completion of these potential acquisitions.
1 Comprised of prospective real estate acquisitions for which the company has executed letters of intent and/or purchase and sale agreements as of May 24, 2018. These prospective acquisitions are subject to substantial closing conditions and the satisfaction of other requirements as detailed in the agreements. Accordingly, the closing of some or all of these pending transactions may not occur.
Posted in Press Release on May 30, 2018