Consistent with its focus on medical office buildings, senior housing facilities, skilled nursing facilities, and hospitals, Griffin-American Healthcare REIT III (GAHC III) recently entered into an agreement to acquire the Independence Medical Office Building Portfolio.
The portfolio consists of five buildings located in Somerville, Massachusetts; New York, New York; Verona, New Jersey; Morristown, New Jersey; and Southgate, Kentucky. It was purchased for an aggregate purchase price of $135 million plus closing costs from Kadima Medical Properties, LLC and totals approximately 461,000 square feet.
“The acquisition of Independence Medical Office Building Portfolio will significantly expand Griffin-American Healthcare REIT III in core urban areas located near major academic and healthcare institutions,” commented Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of Griffin-American Healthcare REIT III. “The portfolio is strongly aligned with major healthcare providers and is more than 96 percent occupied,” he added.
In addition, GAHC III entered into an agreement to acquire another medical office building portfolio this month as well as other properties. It acquired Premier Medical Office Building in Novi, Michigan for approximately $12 million and The Merion Building in King of Prussia, Pennsylvania for approximately $19 million. It also acquired Mount Olympia Medical Office Building Portfolio, which consists of three medical office buildings in Columbus, Ohio; Mount Dora, Florida; and Olympia Fields, Illinois. The portfolio was purchased for approximately $16 million.
These acquisitions mark the most recent in a flood of purchases for the non-traded REIT. Since the beginning of September 2014, the company has acquired five other healthcare-related facilities.
As of October 15, 2014, the GAHC III portfolio is made up of ten buildings acquired for an aggregate purchase price of approximately $53 million.
Co-sponsored by American Healthcare Investors and Griffin Capital Corporation, the REIT commenced its initial public offering in February 2014 and is still open to new investors.