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Griffin-American Healthcare REIT IV Completes First Tranche of $60 Million Senior Housing Portfolio

Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by American Healthcare Investors and Griffin Capital Company, completed the acquisition of the first of two tranches of the 327-unit, eight-facility Northern California Senior Housing Portfolio.

According to a filing with the Securities and Exchange Commission, the portfolio has a contract purchase price of $60 million, plus closing costs.

The first tranche is comprised of five properties located in the Northern California communities of Belmont, Fairfield, Menlo Park and Sacramento. The second tranche, comprised of three senior housing facilities in Napa and Sonoma, California, is expected to close later this year.

The properties in the initial tranche of the portfolio total approximately 134,000 square feet of assisted living, memory care and skilled nursing space. The portfolio is 100 percent occupied and operated by Colonial Oaks Master Tenant LLC under a 15-year absolute net lease with annual rent escalators of 6.5 percent after the first year and 2.5 percent thereafter.

“The addition of the initial tranche of Northern California Senior Housing Portfolio further diversifies the growing Griffin-American Healthcare REIT IV portfolio both geographically and from an asset mix perspective,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “It also strengthens our relationship with Colonial Oaks, which also leases a senior housing portfolio in Lafayette, Louisiana owned by the REIT.”

The five properties were acquired from multiple entities affiliated with Nazareth Healthcare Inc., an unaffiliated third party. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand and borrowings under its revolving 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 has raised approximately $270.7 million in investor equity since inception. The company’s portfolio consists of 27 medical office buildings and senior housing facilities purchased for a total of approximately $318 million.

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