Griffin-American Healthcare REIT IV Buys Reno Medical Office Building
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by Griffin Capital and American Healthcare Investors, purchased Reno Medical Office Building (commonly known as Saint Mary’s Center for Health) in Reno, Nevada for $66.3 million, according to a filing with the Securities and Exchange Commission.
The six-story Reno Medical Office Building is an approximately 191,000-square-foot Class A medical office building situated on the campus of the 380-bed St. Mary’s Regional Medical Center. The property is currently 100 percent leased to seven tenants, with approximately 80 percent of the building leased to Prime Healthcare Services – Reno LLC, the operator of St. Mary’s Regional Medical Center.
“Reno Medical Office Building is a trophy property and a fantastic acquisition for Griffin-American Healthcare REIT IV,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “It is modern, attractive and enjoys a tremendous location on the campus of one of the premier hospitals in Northern Nevada. Perhaps most importantly, the vast majority of the building is leased to the operator of the hospital, which we believe may provide greater long-term stability and added value to the property.”
Reno Medical Office Building is the primary outpatient location for the hospital, providing a variety of healthcare services, including: wellness, physical therapy, obstetrics and gynecology, oncology, radiology, women’s health, neurology, bariatrics and internal medicine.
Griffin-American Healthcare REIT IV financed the acquisition using cash on hand and borrowings under its 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 February 24, 2017, had raised approximately $149.1 million in investor equity. The company’s portfolio consists of 14 medical office buildings and senior housing facilities purchased for a total of approximately $212 million.
