Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded REIT sponsored by American Healthcare Investors and Griffin Capital Company, has purchased a five-building senior housing portfolio located in the Greater St. Louis Metropolitan Area cities of Columbia, Millstadt, Red Bud and Waterloo, Illinois. According to a filing with the Securities and Exchange Commission, the portfolio was purchased for $31.8 million, plus closing costs.
The 229-unit SW Illinois Senior Housing Portfolio totals approximately 190,000 square feet of independent and assisted living space. The portfolio is 100 percent private pay and operated by an affiliate of Compass Senior Living, LLC under a 15-year absolute net lease with two 10-year renewal options and annual rent escalators of 5.5 percent after the first year and 2.5 percent thereafter. With the inclusion of SW Illinois Senior Housing Portfolio, Compass Senior Living owns and/or operates 19 senior housing communities in Arizona, California, Illinois, New Mexico, Oregon and Wisconsin.
“The purchase of SW Illinois Senior Housing Portfolio adds greater geographic and asset diversification to the growing portfolio of Griffin-American Healthcare REIT IV with well-performing senior housing facilities leased to an experienced operator under a long-term absolute net lease,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV.
SW Illinois Senior Housing Portfolio was acquired from A&M Property Holding, LLC, an unaffiliated third party, and was financed using cash on hand and borrowings under its revolving line of credit with Bank of America, N.A. and KeyBank, National Association.
Last week, The DI Wire reported that the company purchased a two-building medical office building portfolio in Athens, Georgia for $16.8 million.
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 March 31, 2017, had raised approximately $187.7 million in investor equity. The company’s portfolio consists of 21 medical office buildings and senior housing facilities purchased for a total of approximately $261 million.