Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by American Healthcare Investors and Griffin Capital Company, has purchased a portfolio of skilled nursing facilities located throughout the state of Missouri for $88.2 million.
Missouri Skilled Nursing Facility Portfolio is comprised of eight facilities totaling 1,112 licensed beds and approximately 385,000 square feet. The portfolio is 100 percent master leased to an entity affiliated with Reliant Care Management Group LLC under a 15-year absolute net lease with two 10-year renewal options. The lease includes annual rent escalators tied to the consumer price index with a floor of 2 percent and a cap of 3 percent.
“Missouri Skilled Nursing Facility Portfolio is an exceptional addition to the Griffin-American Healthcare REIT IV portfolio,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “The facilities enjoy high bed occupancy and 1.8 times year one rent coverage.”
The portfolio of skilled nursing facilities was acquired from affiliates of Reliant Care Management Group, using cash on hand and borrowings under the REIT’s revolving line of credit with Bank of America and Keybank, National Association.
Griffin-American Healthcare REIT IV invests in medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT commenced its initial public offering in February 2016 had raised $526.4 million in investor equity as July 2, 2018. Griffin-American Healthcare REIT IV oversees a 3.0 million-square-foot portfolio of 58 properties purchased for approximately $807.6 million.