Griffin-American Healthcare REIT IV Buys Connecticut Medical Office Building Portfolio
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded REIT sponsored by American Healthcare Investors and Griffin Capital Company, has purchased Fairfield County Medical Office Building Portfolio, comprised of two medical office buildings located in the Bridgeport, Connecticut suburbs of Stratford and Trumbull. According to a filing with the Securities and Exchange Commission, the purchase price was $15.4 million, plus closing costs.
The approximately 80,000-square-foot Fairfield County Medical Office Building Portfolio is currently 94.6 percent leased to 15 tenants with an average remaining lease term of more than seven years. The portfolio is anchored by affiliates of Advanced Radiology Consultants, which occupy an aggregate of approximately 29 percent of the leasable space and have recently executed new agreements to extend their leases to 2029.
Both buildings are located along the “Gold Coast” of southern Connecticut and include tenancy by Northeast Medical Group Inc. and St. Vincent’s Multispecialty Group Inc., subsidiaries of Yale New Haven Health and Ascension Health, respectively, which are two of the region’s strongest health systems. Additionally, the 383-bed Bridgeport Hospital, owned and operated by Yale New Haven Health, is located approximately two miles from the Stratford building.
“Fairfield County Medical Office Building Portfolio is located in a prosperous region of the country with a significant demand for healthcare services,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “The portfolio enjoys a high occupancy level and strong roots to the local healthcare delivery systems, making it a very attractive addition to Griffin-American Healthcare REIT IV.”
Fairfield County Medical Office Building Portfolio was acquired from Trumbull Medical Arts LLC and Stratford Medical Arts LLC, both of which are unaffiliated third parties to Griffin-American Healthcare REIT IV. The REIT 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 invests in healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT commenced its initial public offering in February 2016, and as of August 18, 2017, had raised approximately $306.5 million in investor equity. The company’s portfolio consists of 30 medical office buildings and senior housing facilities purchased for a total of approximately $357 million.
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