Griffin-American Healthcare REIT IV Buys Medical Office Building Near Phoenix
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by American Healthcare Investors and Griffin Capital Company LLC, has purchased Surprise Medical Office Building, located in the Phoenix suburb of Surprise, Arizona.
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust, has purchased Surprise Medical Office Building located in the Phoenix suburb of Surprise, Arizona, for $11.7 million.
Built in 2012, the approximately 34,000-square-foot Surprise Medical Office Building is currently 89.5 percent leased to three tenants. Approximately 72 percent of the building is leased to two Banner Health-affiliated tenants, Banner Medical Group and the Center for Orthopedic Research and Education Inc., whose leases have expiration dates in 2022 and 2028, respectively. All tenant leases include annual rent escalators of between 2.5 percent and 3 percent.
“Surprise Medical Office Building is strategically located near two major hospitals in a rapidly growing suburb of Phoenix where the average population growth exceeds the national average,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “The local population also includes a significant segment of senior citizens within a 15-mile radius of the property.”
Based in Phoenix, Banner Health is a not-for-profit integrated health system serving the western United States and is the largest private employer in Arizona. The Class A Surprise Medical Office Building is located within close proximity of the 404-bed Banner Del E. Webb Medical Center and the 425-bed Banner Boswell Medical Center.
Griffin-American Healthcare REIT IV purchased the property from Banyan Surprise Plaza LLC using cash on hand and borrowings under its revolving line of credit with Bank of America N.A. and KeyBank National Association.
In related news, the company recently purchased Sauk Prairie Medical Office Building located in the Wisconsin village of Prairie du Sac near Madison for $19.5 million.
Griffin-American Healthcare REIT IV, sponsored by American Healthcare Investors and Griffin Capital Company, invests in medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The company’s portfolio is comprised of 44 medical office buildings and senior housing facilities purchased for approximately $520 million. The REIT commenced its initial public offering in February 2016 had raised $410.2 million in investor equity as of the fourth quarter of 2017.
