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Griffin-American Healthcare REIT IV Acquires Medical Office Building Near Madison, Wisconsin
MADISON, Wis. (April 13, 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 Sauk Prairie Medical Office Building, which consists of a Class A, on-campus medical office building located in the Wisconsin village of Prairie du Sac, near Madison, for $19.5 million.
Built in 2014, the approximately 55,000-square-foot Sauk Prairie Medical Office Building is currently 100 percent leased to multiple healthcare service providers specializing in orthopedics, women’s health, obstetrics and gynecology, sleep lab, audiology, otolaryngology, cardiology, surgery, pain management, dermatology, endocrinology, urology, neurology, oncology, geriatrics and optometry.
“Sauk Prairie Medical Office Building is strategically located on the campus of the local community hospital, serving as a critical component of the area’s healthcare delivery chain,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “There is a lack of on-campus medical office options in the market, which we believe provides added value to the building and to the portfolio of Griffin-American Healthcare REIT IV.”
Sauk Prairie Medical Office Building is located on the campus of, and seamlessly connected to, the 36-bed Sauk Prairie Hospital, a not-for-profit, full-service acute-care hospital operated by Sauk Prairie Healthcare, Inc. The medical office building enjoys a weighted average remaining lease term of approximately 8.6 years and is anchored by Sauk Prairie Healthcare, which occupies 59 percent of the leasable space. The property is within close proximity to main access routes into Madison, Highway 12 and Highway PF.
Sauk Prairie Medical Office Building was acquired from Sauk Prairie MOB LLC. The seller was represented by CBRE’s Chris Bodnar and Lee Asher. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand and borrowings under its revolving line of credit with Bank of America, N.A. and KeyBank, National Association.
Griffin-American Healthcare REIT IV purchased its first property in June 2016 and, as of the date of acquisition of Sauk Prairie Medical Office Building, has since acquired a portfolio of 43 medical office buildings, senior housing facilities and skilled nursing facilities for an aggregate contract purchase price of approximately $508 million. Additionally, the company is currently pursuing approximately $233 million in additional pending acquisitions1 which would result in a total portfolio of approximately $741 million 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 April 13, 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 13, 2018