Griffin-American Healthcare REIT IV Buys Medical Office Building in Oregon
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by American Healthcare Investors and Griffin Capital Company, purchased the Roseburg Medical Office Building in Roseburg, Oregon from Roseburg Surgery Center LLC. According to a filing with the Securities and Exchange Commission, the purchase price was $23.2 million, plus closing costs.
Built in 2002, the approximately 62,000-square-foot Roseburg Medical Office Building is currently 100 percent triple net leased to Mercy Medical Center Inc. and Centennial Medical Group with an average remaining lease term of nearly 10 years and annual rent escalators between 2 percent and 3 percent.
“Roseburg Medical Office Building enjoys an enviable location on the campus of, and with a physical connection to, the region’s dominant hospital,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “This acquisition also further expands the geographical diversity of the Griffin-American Healthcare REIT IV portfolio, as well as establishes a new affiliation with one of the nation’s premier health systems.”
The property is physically connected to the 174-bed Mercy Medical Center and provides a range of medical and surgical services including physical therapy, imaging, neurosurgery, podiatry and orthopedics. Mercy Medical Center is the largest hospital in Douglas County, Oregon and a member of Catholic Health Initiatives, one of the nation’s largest health systems.
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 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 has raised approximately $270.7 million in investor equity since inception. The company’s portfolio consists of 28 medical office buildings and senior housing facilities purchased for a total of approximately $341 million.
