Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Company, has purchased Pinnacle Warrenton Assisted Living Facility, a 53-unit assisted living facility located in the St. Louis suburb of Warrenton, Missouri, for $8.1 million.
The property was purchased in a joint venture with an affiliate of Meridian Senior Living LLC, which will manage the portfolio on a day-to-day basis. Meridian is a senior housing operator that manages a portfolio of 86 communities valued in excess of $1.3 billion throughout 21 states and the District of Columbia.
Griffin-American Healthcare REIT IV owns approximately 98 percent of the joint venture and acts as its managing member. The facility was acquired under a RIDEA structure that allows for the joint venture partners to participate in both the rental and operational cash flow of the property.
Pinnacle Warrenton Assisted Living Facility totals approximately 34,000 square feet and has an occupancy rate of approximately 91 percent. During the past five years, approximately $1 million in capital investments were made by the former owner to modernize and improve the property. The facility is 100 percent private pay.
“Pinnacle Warrenton Assisted Living Facility is the only licensed property of its type in the area, which we believe will allow us to further increase the already strong occupancy and value of the facility,” said Stefan Oh, executive vice president of acquisitions for AHI and Griffin-American Healthcare REIT IV. “Additionally, the acquisition further strengthens our relationship with Meridian Senior Living.”
Griffin-American Healthcare REIT IV and Meridian have purchased 12 senior housing properties in previous joint venture transactions.
Pinnacle Warrenton Assisted Living Facility was acquired from Warrenton Clearpath Property Investment LLC, an unaffiliated third party. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand and borrowings under its revolving line of credit.
In related news, earlier this month, the REIT purchased Edmonds Medical Office Building, an approximately 55,000-square-foot medical office building in the Seattle suburb of Edmonds, Washington, for $23.5 million.
Griffin-American Healthcare REIT IV invests in medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT commenced its initial public offering in February 2016 had raised $526.4 million in investor equity as July 2, 2018. Griffin-American Healthcare REIT IV oversees a 3.0 million-square-foot portfolio of 49 properties purchased for approximately $618.7 million.