Griffin-American Healthcare REIT IV Inks Deal to Acquire First Asset
Griffin-American Healthcare REIT IV has entered into an agreement to acquire Auburn Medical Office Building, an approximately 19,000-square-foot medical office building in the affluent Sacramento suburb of Auburn, California. The REIT’s $3 billion offering was declared effective by the Securities and Exchange Commission in February and broke escrow last month after meeting its initial minimum offering.
Auburn Medical Office Building is 100 percent triple net leased to UC Davis Medical Group, a member of the UC Davis Health System, which has occupied the building since its construction in 1997. Strategically 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, obstetrics and gynecology, imaging and laboratory procedures.
“Auburn Medical Office Building is an integral part of the regional healthcare delivery system with an enviable location in close proximity to a significant acute care hospital,” said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of Griffin-American Healthcare REIT IV. “Perhaps more importantly, the building is 100 percent leased to UC Davis Medical Group, an exceptional tenant that has been in occupancy for nearly 20 years and whose parent company enjoys an institutional grade credit rating of Aa2 from Moody’s Investor Services.”
Griffin-American Healthcare REIT IV is sponsored by American Healthcare Investors and Griffin Capital Corporation. American Healthcare Investors is one of the world’s largest managers of healthcare real estate, with a portfolio valued in excess of $8 billion. Griffin Capital manages a $6.3 billion portfolio of assets, largely comprised of “business essential” commercial real estate assets.
