Griffin-American Healthcare REIT IV Acquires Initial Tranche Of Eight-Facility Northern California Senior Housing Portfolio
SAN FRANCISCO–American Healthcare Investors and Griffin Capital Company, LLC, the co-sponsors of Griffin-American Healthcare REIT IV, Inc., announced today that the REIT has completed the acquisition of the first of two tranches of the total 327-unit, eight-facility Northern California Senior Housing Portfolio, with properties acquired in the first tranche located in the Northern California communities of Belmont, Fairfield, Menlo Park and Sacramento. The second tranche, comprised of senior housing facilities in Napa and Sonoma, California, is expected to close later this year, but is subject to customary closing conditions and the satisfaction of other requirements as detailed in the respective acquisition agreements, and therefore, no assurances can be given that the second tranche will close within this timeframe or at all.
The five-facility initial tranche of Northern California Senior Housing Portfolio totals 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. With the inclusion of the initial tranche of Northern California Senior Housing Portfolio, Colonial Oaks operates and/or manages 13 senior housing communities in California, Georgia, Louisiana and Texas.
“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 initial tranche of Northern California Senior Housing Portfolio was acquired from multiple entities affiliated with Nazareth Healthcare, Inc., an unaffiliated third party represented by Grant Goodman and Chad Elliott of Lancaster Pollard & Co., LLC. 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 purchased its first property in June 2016 and, as of the date of acquisition of the initial tranche of Northern California Senior Housing Portfolio, has acquired a portfolio of 27 medical office buildings and senior housing facilities for an aggregate contract purchase price of approximately $318 million.