Skip to content

Griffin-American Healthcare REIT IV Completes First Purchase

Griffin-American Healthcare REIT IV, a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Corporation, acquired Auburn Medical Office Building in the Sacramento suburb of Auburn, California. The property was purchased for approximately $5.5 million from Kargan Holdings, according to a filing with the Securities and Exchange Commission.

The 19,000-square-foot Auburn Medical Office Building is 100 percent leased to The Regents of the University of California for the benefit of UC Davis Medical Group, a member of the UC Davis Health System, which has occupied the building since its construction in 1997.

“Auburn Medical Office Building is an ideal acquisition for Griffin-American Healthcare REIT IV,” said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of Griffin-American Healthcare REIT IV. “It is 100 percent leased to an exceptional tenant that has been in occupancy for nearly 20 years and enjoys an institutional grade credit rating of Aa2 from Moody’s Investor Services. Additionally, it is located in close proximity to a significant acute care hospital and plays an important role in the regional healthcare delivery system.”

The property is located within a block of the 72-bed Sutter Auburn Faith Hospital, a number of healthcare services are provided in the building, including primary care and specialty services such as pediatrics, cardiology, orthopaedics, obstetrics and gynecology, imaging and laboratory procedures.

Griffin-American Healthcare REIT IV Advisor, the REIT’s advisor, was paid a 2.25 percent acquisition fee of approximately $122,625. The property was financed with cash on hand.

Griffin-American Healthcare REIT IV focuses on healthcare real estate assets, primarily medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT went effective in February 2016 and has raised approximately $7.4 million in investor equity since inception. The Auburn Medical Office Building is the company’s first acquisition.

Click here to visit The DI Wire directory page.