ORLANDO, Fla., Nov. 6, 2017 /PRNewswire/ -- American
Healthcare Investors and Griffin Capital Company, LLC, the
co-sponsors of Griffin-American Healthcare REIT IV, Inc., announced
today the REIT has completed the acquisition of the 1,140-unit,
nine-property Central Florida Senior Housing Portfolio for
approximately $110 million at a
capitalization rate of 7.03 percent.1 The portfolio's
properties are located throughout the Greater Tampa and Greater Orlando communities of Bradenton, Brooksville, Lake
Placid, Lakeland,
Pinellas Park, Sanford, Spring
Hill and Winter Haven.
The acquisition was completed pursuant to a joint venture with
an affiliate of Meridian Senior Living, LLC, which will manage the
portfolio on a day-to-day basis. Griffin-American Healthcare REIT
IV owns approximately 98 percent of the joint venture and acts as
its managing member. The portfolio was acquired under a RIDEA
structure, which allows for the joint venture partners to
participate in both the rental and operational cash flow of each
property.
Central Florida Senior Housing Portfolio totals approximately
814,000 square feet of assisted living, independent living and
memory care space and has an aggregate occupancy rate of
approximately 84 percent, as of September
30, 2017. During the past three years, approximately
$6.5 million in capital investments
have been made to modernize and improve the properties by the
former owner.
Washington, D.C.-based Meridian
Senior Living is an experienced senior living operator, which
manages a portfolio valued in excess of $1.25 billion throughout 19 states and the
District of Columbia. The company
employs more than 4,000 professionals who care for approximately
5,000 senior residents in 71 communities.
"The addition of Central Florida Senior Housing Portfolio
provides the REIT with a significant footprint in Florida amidst a large and aging population
that is increasingly likely to transition to senior living
communities," said Stefan Oh,
executive vice president of acquisitions for American Healthcare
Investors and Griffin-American Healthcare REIT IV. "We also expect
to enhance the value from these assets through our partnership with
Meridian Senior Living, a senior living operator with extensive
expertise and experience, which will employ its proven active
management strategies in an effort to realize greater occupancy,
higher tenant satisfaction and financial efficiencies."
Central Florida Senior Housing Portfolio was acquired from New
Senior Investment Group (NYSE: SNR), an unaffiliated third party
represented by Cody Tremper of
Greystone Real Estate Advisors.
Griffin-American Healthcare REIT IV purchased its first property
in June 2016 and, as of the date of
acquisition of Central Florida Senior Housing Portfolio, has
acquired a portfolio of 40 medical office buildings and senior
housing facilities for an aggregate contract purchase price of
approximately $466 million.
Additionally, on October 31, 2017,
the REIT entered into an amendment with Bank of America, N.A., as
administrative agent, and the subsidiary guarantors and lenders, on
its existing $100 million revolving
line of credit to expand the line by $50
million, to a maximum principal amount of $150 million. The REIT also obtained a term loan
with its existing team of lenders for a maximum amount of
$50 million. Both credit facilities
mature on August 25, 2019 and may be
extended for one 12-month period subject to satisfaction of certain
conditions as detailed in the credit agreement.
1 Based
upon Central Florida Senior Housing Portfolio's net operating
income from such portfolio's forward looking pro forma projections
for the expected year one portfolio performance, including any
contractual rent increases contained in such leases for year one,
divided by the contract purchase price of such portfolio, exclusive
of any acquisition fees and expenses paid. Central Florida Senior
Housing Portfolio's capitalization rate was 7.09 percent based on
its 2016 net operating income.
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. One of the world's largest managers of healthcare real
estate, the company oversees an approximately 30
million-square-foot portfolio valued at approximately $8.7 billion, based on aggregate purchase price,
on behalf of multiple investment programs that include thousands of
individual and institutional investors. As of June 30, 2017, this international portfolio
includes approximately 600 buildings comprised of medical office
buildings, hospitals, senior housing, skilled nursing facilities
and integrated senior health campuses located throughout
the United States and the
United Kingdom. The company and
its principals have completed in excess of $25 billion in aggregate acquisition and
disposition transactions, more than $15
billion of which have been healthcare-related. 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 IV, Inc.
Griffin-American Healthcare REIT IV intends to build a balanced and
diversified portfolio of healthcare real estate assets, focusing
primarily on medical office buildings, hospitals, skilled nursing
facilities, senior housing and other healthcare-related facilities.
Griffin-American Healthcare REIT IV also seeks to provide:
portfolio diversification, preservation of capital, monthly
distributions and capital appreciation by increasing the value of
its properties for its stockholders. Griffin-American Healthcare
REIT IV qualified to be taxed as a real estate investment trust for
federal income tax purposes beginning with its taxable year ended
December 31, 2016, and it intends to
continue to qualify to be taxed as a REIT. The REIT is co-sponsored
by American Healthcare Investors and Griffin Capital Company, LLC.
For more information regarding Griffin-American Healthcare REIT IV,
please visit www.healthcarereitiv.com.
About Griffin Capital Company, LLC
Griffin Capital
Company, LLC ("Griffin Capital") is a leading alternative
investment asset manager with approximately $9.5 billion* in assets under management. Founded
in 1995, the privately-held firm is led by a seasoned team of
senior executives with more than two decades of investment and real
estate experience and who collectively have executed more than 650
transactions valued in excess of $22
billion. The firm manages, sponsors or co-sponsors a suite
of carefully curated, institutional quality investment solutions
distributed by Griffin Capital Securities, LLC to retail investors
through a community of partners, including independent and
insurance broker-dealers, wirehouses, registered investment
advisory firms and the financial advisors who work with these
enterprises. Additional information about Griffin Capital is
available at www.griffincapital.com.
*As of June 30, 2017.
This release contains certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, or the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, including
statements with respect to the diversification and growth of the
company's portfolio, the financial projections of Central Florida
Senior Housing Portfolio, the future demand for senior living
communities, the company's ability to realize greater value from
Central Florida Senior Housing Portfolio, the quality of the
operator of Central Florida Senior Housing Portfolio and the
operator's ability to realize growth in occupancy, tenant
satisfaction and financial efficiencies. We intend for all
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act and Section 21E of the Exchange Act, as
applicable by law. Because such statements include risks,
uncertainties and contingencies, actual results may differ
materially from those expressed or implied by such forward-looking
statements. These risks, uncertainties and contingencies include,
but are not limited to, the following: our strength and financial
condition; the uncertainties relating to the medical needs and
local economies of Bradenton,
Brooksville, Lake Placid, Lakeland, Pinellas
Park, Sanford, Spring Hill and Winter Haven, Florida; the strength and
financial condition of Central Florida Senior Housing Portfolio and
its tenants; the uncertainties relating to changes in general
economic and real estate conditions; the uncertainties regarding
changes in the healthcare industry; the uncertainties relating to
the implementation of Griffin-American Healthcare REIT IV's real
estate investment strategy; and other risk factors as detailed from
time to time in Griffin-American Healthcare REIT IV's periodic
reports, as filed with the Securities and Exchange Commission.
Forward-looking statements in this document speak only as of the
date on which such statements were made, and we undertake no
obligation to update any such statements that may become untrue
because of subsequent events.
Contact: Damon
Elder
Spotlight Marketing Communications
(949) 427-5172 ext. 702
damon@spotlightmarcom.com
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SOURCE American Healthcare Investors