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 the 254-bed, two-property Central Wisconsin Senior Care Portfolio for approximately $22.6 million. The portfolio’s properties are located in the Madison suburbs of Waunakee and Sun Prairie, Wisconsin.
Central Wisconsin Senior Care Portfolio totals approximately 236,000 square feet of skilled nursing, assisted living and independent living space.
All assisted and independent living beds in the portfolio are currently 100 percent private pay, while the skilled nursing beds have a revenue quality mix (total number of Medicare, managed Medicare and private pay days divided by total number of actual patient days) of 67 percent as of November 2017.
Both facilities have been awarded five-star quality measures ratings from the Centers for Medicare & Medicaid Services in recent years. Renovations and capital investments to both properties totaling approximately $9.4 million have been completed since 2006.
The portfolio is master leased under an absolute net structure through 2033 with two 10-year renewal options to an entity affiliated with Integro Healthcare Consulting LLC.
The master lease includes annual rent escalators of between 2 percent and 2.5 percent. Founded in 2004, Integro Healthcare Consulting has operated 27 senior housing and skilled nursing facilities throughout the Midwest and western United States.
“Central Wisconsin Senior Care Portfolio provides the REIT with a foothold in Wisconsin, a state with a significant barrier to entry for skilled nursing operators due to a moratorium on development that has been in effect since 1981,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV.
Central Wisconsin Senior Care Portfolio was acquired from Waunakee Manor and Sun Prairie Associates Limited Partnership.
Griffin-American Healthcare REIT IV invests in medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The company’s portfolio was comprised of 42 medical office buildings and senior housing facilities for a total purchase price of approximately $489 million. The REIT commenced its initial public offering in February 2016, and as of the last quarterly filing, had raised $353.5 million in investor equity.