NEWPORT BEACH, Calif., July 11, 2012 (GLOBE NEWSWIRE) -- American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT II, Inc., announced today the acquisition of 14 medical office buildings in Florida, Texas, New Mexico, Hawaii, Indiana, Alabama, Illinois, Colorado and South Carolina by the REIT for an aggregate purchase price of $106.7 million. The acquisitions were completed between May 22, 2012 and July 11, 2012. Currently, the portfolio of Griffin-American Healthcare REIT II totals 90 buildings valued at approximately $822 million, based on purchase price.
"We continue to identify attractive properties for the growing portfolio of Griffin-American Healthcare REIT II, which now owns properties in 25 states," said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT. "Most of these assets are either on the campus of, in close proximity to, or strongly affiliated with a major healthcare system, a characteristic we value when evaluating a potential acquisition on behalf of the REIT."
Totaling approximately 474,000 square feet, the medical office buildings are located in New Port Richey, Florida; Rockwall, San Angelo, Schertz and Texarkana, Texas; Champaign and Lemont, Illinois; Greeley, Colorado; Columbia, South Carolina; Las Vegas, New Mexico; Hilo, Hawaii; Warsaw, Indiana; and Huntsville, Alabama.
The acquisitions include:
New Port Richey, Florida
Premier Medical Center is an approximately 21,000-square-foot, single-story, multi-tenant medical office building located approximately one mile from the 236-bed Medical Center of Trinity in the Tampa suburb of New Port Richey, Florida. Anchored by a urology and cardiology practice, the building is currently 92 percent leased.
Rockwall Medical Center is a two-story, multi-tenant medical office building consisting of approximately 85,000 square feet in the Dallas suburb of Rockwall. Located adjacent to the 50-bed Texas Health Presbyterian hospital, the facility was built in 2006 and is currently 91 percent leased to multiple tenants, including Tenet Healthcare Corporation's Lake Pointe Medical Center.
San Angelo, Texas
San Angelo Community Medical Center I & II are adjacent single-story medical office buildings located on the campus of San Angelo Community Medical Center, a 171-bed community hospital owned by Community Health Systems. Built in 2004 and 2005, the buildings total an aggregate of approximately 43,000 square feet and are currently 100 percent leased by the medical center.
Schertz Medical Building is an approximately 20,000-square-foot, single-story, multi-tenant medical office building in the San Antonio suburb of Schertz, Texas. Built in 2005, the property is currently 100 percent leased to Alamo City Medical Group and Schertz Kidney Center.
Las Vegas, New Mexico
Alta Vista Medical Office Building is an approximately 14,000-square-foot facility located on the campus of the 54-bed Alta Vista Regional Hospital in Las Vegas, New Mexico. The hospital, which currently leases the entire building through June 2020, provides orthopedic, obstetric and gynecological services at the building.
The Hilo medical office building is an approximately 23,000-square-foot, two-story, single-tenant medical office building in Hilo, Hawaii. Built in 1996, the property is currently 100 percent leased to the 264-bed Hilo Medical Center and serves as its primary outpatient facility.
Beyer Medical Building is an approximately 19,000-square-foot medical office building built in 2006 on the campus of Community Health System's 72-bed Kosciusko Community Hospital. The property is currently fully leased to the hospital through January 2018 and is home to its imaging center and internal medicine department.
Physician's Plaza at Crestwood is a two-story, multi-tenant medical office building located on the campus of Community Health System's Crestwood Medical Center, a 150-bed acute care hospital in Huntsville, Alabama. The approximately 47,000-square-foot building was built in 2005 and is currently 100 percent leased, largely to Crestwood Medical Center, which houses its sleep center, orthopedic clinic and women's clinic in the facility.
The New Port Richey, Rockwall, San Angelo, Schertz, Las Vegas, Hilo, Warsaw and Huntsville properties were acquired from affiliates of Montecito Medical Investment Company, an unaffiliated third party represented by Chris Bodnar and Lee Asher of CBRE, Inc.
The Texarkana medical office building is a two-story, multi-tenant facility comprised of approximately 32,000 square feet located in close proximity to Christus St. Michael Hospital, a 312-bed medical center that has been serving the healthcare needs of the Texarkana region for nearly 100 years. Constructed in 2005 on a two-acre parcel, the building is currently 100 percent leased to Collom and Carney Clinic and Ambulatory Surgery Centers of America. The facility was acquired directly from The Cirrus Group, an unaffiliated third party.
The Champaign facility is a single-story medical office building constructed in 2002. The approximately 30,000-square-foot building is currently fully leased by Carle Foundation Hospital, a 295-bed regional hospital located in nearby Urbana.
The Lemont medical office building is a two-story facility constructed in 2001. The nearly 39,000-square-foot building is currently 60 percent leased and affiliated with Advocate Good Samaritan Hospital, the largest of its six tenants and part of Advocate Health Care, the largest fully integrated not-for-profit healthcare delivery system in the Chicago metropolitan region.
The Champaign and Lemont buildings were acquired from HSA Primecare, an unaffiliated third party represented by Savills LLC.
The Greeley building is an approximately 58,000-square-foot, single-story, multi-tenant medical office building constructed in 1998 with an addition completed in 2003 and 2004. The building is located within five miles of Banner Health's North Colorado Medical Center, which currently leases the entire medical office building. The 378-bed medical center opened in 1904 and serves a large region that includes southern Wyoming, western Nebraska, western Kansas and northeastern Colorado. The building was acquired from an unaffiliated third party represented by Garth Hogan and Todd Perman, CCIM, of Newmark Grubb Knight Frank.
Columbia, South Carolina
Northeast Medical Office Building is a two-story, multi-tenant facility consisting of approximately 43,000 square feet in Columbia, South Carolina. The building is located within approximately seven miles of Palmetto Health Richland Hospital, Children's and Heart Hospital, Palmetto Health Baptist hospital, and Providence Hospital Northeast. Completed in 1988, the facility is currently 87 percent leased to fourteen tenants, the largest of which is Palmetto Health, the region's largest not-for-profit health system. The building was acquired from NE Medical Center LLC, an unaffiliated third party represented by Chris Bodnar and Lee Asher of CBRE, Inc.
The acquisitions were financed through the assumption of approximately $3.7 million of existing debt, $64 million in borrowings under Griffin-American Healthcare REIT II's unsecured line of credit with Bank of America, N.A., $4 million on the prior secured line of credit with Bank of America, N.A., and the remaining using cash on hand.
As of March 31, 2012, the Griffin-American Healthcare REIT II property portfolio was 96.7 percent leased with a weighted average remaining lease term of approximately 10 years and leverage of 33.3 percent.
About American Healthcare Investors LLC
American Healthcare Investors is an investment management firm that specializes in the acquisition and management of healthcare-related real estate, including medical office buildings, skilled nursing facilities, assisted living facilities and hospitals. The company was founded by nationally recognized real estate investment executives Jeff Hanson, Danny Prosky and Mathieu Streiff, who have completed in excess of $15 billion in aggregate acquisition and disposition transactions during their careers, approximately $5.5 billion of which has been healthcare-related real estate transactions. American Healthcare Investors is committed to providing investors with access to the potential benefits that healthcare-related real estate ownership can provide. For more information regarding American Healthcare Investors, please visit www.AmericanHealthcareInvestors.com.
About Griffin-American Healthcare REIT II, Inc.
Griffin-American Healthcare REIT II, Inc. is a real estate investment trust organized to invest in a diversified portfolio of real estate properties, focusing primarily on medical office buildings and healthcare-related facilities. The REIT is co-sponsored by American Healthcare Investors and Griffin Capital Corporation. For more information regarding Griffin-American Healthcare REIT II, please visit www.HealthcareREIT2.com.
The Griffin-American Healthcare REIT II, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13622
About Griffin Capital Corporation
Los Angeles-based Griffin Capital Corporation has a sixteen-year track record sponsoring real estate investment vehicles and managing institutional and retail equity capital. Led by senior executives, each with more than two decades of real estate experience, who have collectively closed more than 400 transactions representing over $14.0 billion in transaction value, Griffin Capital has acquired or constructed over 11 million square feet since 1996, and currently manages a portfolio of more than 8.5 million square feet located in 13 states, representing approximately $1 billion in asset value. For more information regarding Griffin Capital, please visit www.GriffinCapital.com.
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