American Healthcare Investors and Griffin Capital Corp., the co-sponsors of Griffin-American Healthcare REIT II Inc., announced the acquisition of three medical office buildings by the REIT for an aggregate purchase price of approximately $59.6 million.
The new acquisitions include the East Tennessee Medical Office Building Portfolio in Knoxville, Tenn., which consists of two single-tenant, two-story medical office buildings totaling approximately 167,000 square feet located on the campus of the Provision Health Alliance, and the DeSoto Medical Office Building, a single-story building consisting of approximately 30,000 square feet in the Dallas suburb of DeSoto, Texas.
The East Tennessee Medical Office Building Portfolio was acquired from an unaffiliated third party represented by E. Hunter Beebe of Healthcare Real Estate Capital LLC. Griffin-American Healthcare REIT II financed the acquisition using $50 million in borrowings under its unsecured line of credit with Bank of America, and the remaining using cash on hand.
DeSoto Medical Office Building was acquired from Caddis Partners, an unaffiliated third party represented by Cain Brothers. Griffin-American Healthcare REIT II financed the acquisition using $5.5 million in borrowings under its unsecured line of credit with Bank of America, and the remaining using cash on hand.
‘We continue to source attractive acquisition opportunities, which we believe provide greater scale and diversification to the portfolio of Griffin-American Healthcare REIT II,’ says Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT. ‘We have more than doubled the size of the REIT's portfolio since the beginning of the year.’