Tuesday, January 17, 2012

Griffin-American Healthcare REIT II Acquires Eleven Facilities Throughout the Southern United States for $174 Million

  


NEWPORT BEACH, CA (Jan. 17, 2012) – Griffin-American Healthcare REIT II (formerly known as Grubb & Ellis Healthcare REIT II) announced today that it has acquired 10 skilled nursing facilities and one medical office building for approximately $174.3 million.

 The properties are located in the states of Texas, Georgia, Tennessee, Louisiana and Alabama.

 Totaling approximately 454,000 square feet, the ten nursing facilities add 1,364-beds to the skilled nursing facility portfolio of Griffin-American Healthcare REIT II and include facilities that range in size from 20,000 square feet to 77,000 square feet, with an average size of 45,000 square feet.

Built between 1969 and 1999, the 10 buildings are master leased through 2027 by affiliates of Wellington Healthcare Services LP, a leading provider of skilled nursing and rehabilitation services.

Sierra Providence East Medical Plaza I (top left photo) is a 60,000-square-foot, three-story, multi-tenant medical office building built in 2008 on the 42-acre campus of Sierra Providence East Medical Center in El Paso, Texas.

 The 110-bed medical center is a member of the Sierra Providence Health Network and a subsidiary of Dallas-based Tenet Healthcare, one of the largest investor-owned hospital companies in the United States.   Tenet is also the single largest tenant of the medical office building, which is 90 percent leased to thirteen tenants. 

 “These properties are each an ideal fit for the clinical healthcare acquisition strategy of Griffin-American Healthcare REIT II,” said Danny Prosky (middle right photo), president and chief operating officer.

 “We focus on institutional-grade healthcare facilities that are accretive to our bottom line, that support our investor distribution, and that are likely to add the highest value to our nationwide portfolio.  These acquisitions meet each of those requirements.”

 The 10 skilled nursing facilities are:
  

  • ·         Bell Minor Facility: 2200 Old Hamilton Place NE, Gainesville, Ga. A single-story, 104-bed property totaling 39,000 square feet.

  • ·         Buckhead Facility: 2920 Pharr Court South, Atlanta. A five-story, 220-bed property totaling 77,000 square feet.

  • ·         Millington Facility: 5081 Easley St., Millington, Tenn. A single-story, 85-bed property totaling 33,000 square feet.

  • ·         New London Facility: 2020 McGee Road, Snellville, Ga. A single-story, 144-bed property totaling 45,000 square feet.

  • ·         Parkway Facility: 200 South Parkway West, Memphis, Tenn. A single-story, 120-bed property totaling 38,000 square feet.

  • ·         Riverside Facility: 5100 West St., Covington, Ga. A single-story, 158-bed property totaling 42,000 square feet.

  • ·         Rockdale Facility: 1510 Renaissance Drive, Conyers, Ga. A single-story, 102-bed property totaling 48,000 square feet.

  • ·         Sea Breeze Facility: 550 Congress St., Mobile, Ala. A three-story, 120-bed property totaling 46,000 square feet.

  • ·         Shreveport Facility: 1736 Irving Place, Shreveport, La. A four-story, 227-bed property totaling 66,000 square feet.

  • ·         Westminster Facility: 560 St. Charles Ave. NE, Atlanta. A two-story, 84-bed property totaling 20,000 square feet.
  
The ten skilled nursing facilities were acquired from affiliates of Wellington Healthcare Services, LP, an unaffiliated third party represented by Matt Ryan and Michael Hoagberg of Houlihan Lokey.

 Griffin-American Healthcare REIT II financed the acquisition through the assumption of nine separate U.S. Housing and Urban Development loans totaling $70.5 million, the assumption of a $12.7 million loan with Capital Funding Group, $38.4 million in borrowings under its line of credit with Bank of America, N.A., $20.0 million in borrowings under its line of credit with KeyBank, as well as net cash proceeds received from its offering.

 Sierra Providence East Medical Plaza I was acquired from PHT Investment Holdings LLC, an unaffiliated third party represented by Chris Bodnar (bottom left photo) of CB Richard Ellis.  Griffin-American Healthcare REIT II financed the acquisition using cash proceeds received from its offering. 

Contact:    
Damon Elder
(949) 270-9207

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