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 agreed to purchase a portfolio of skilled nursing facilities located throughout Missouri for $88.2 million. The potential acquisition is expected to close during the third quarter of 2018.
Missouri Skilled Nursing Facility Portfolio is comprised of eight properties totaling 1,112 licensed beds and approximately 384,000 square feet. The portfolio will be 100 percent leased under a 15-year absolute net lease with two 10-year renewal options and with annual rent escalators tied to the consumer price index with a floor of 2 percent and a cap of 3 percent.
“This portfolio of skilled nursing facilities adds greater diversification to the Griffin-American Healthcare REIT IV portfolio in terms of geography, asset class and revenue,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV. “This potential acquisition is especially attractive as the portfolio is comprised of well-performing skilled nursing facilities in desirable locations that are subject to a long-term absolute net lease.”
In other news, the REIT recently announced plans to close its initial public offering on February 16, 2019.
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 $463 million in investor equity as of the first quarter of 2018. The company’s portfolio is comprised of 45 medical office buildings and senior housing facilities purchased for approximately $536.1 million.