Skip navigation

Griffin-American Healthcare REIT II Buys LA Hospitals and Medical Office Buildings in Texas and Georgia for $108.7M

Griffin-American Healthcare REIT II Inc. acquired three Los Angeles-area hospitals and three medical office buildings in Texas and Georgia for approximately $108.7 million.

The Los Angeles acquisition includes East Los Angeles Doctors Hospital, Memorial Hospital of Gardena and Coast Plaza Hospital. The general acute care hospitals contain 416 beds and total 296,000 sq. ft. of clinical space. Each is mater leased to operating affiliates of Avanti Hospitals LLC under a 15-year absolute net lease with two 10-year renewal options.

Griffin-American bought the portfolio from Avanti Hospitals using $86.6 million in borrowings under its secured line of credit with Bank of American N.A., plus cash on hand. Kevin Roy, of Healthcare Finance Partners, helped negotiate this transaction.

A two-story, 51,000-sq.-ft. medical office building in Frisco, Texas was acquired from Caddis Partners. The building was completed in 2007 and is currently 94 percent leased, to tenants including Texas Health Resources. Griffin-American paid for the property using $14.6 million in borrowings under its unsecured line of credit and cash.

Griffin-American also acquired Mountainside Medical Building I and II, two one-story medical office buildings totaling approximately 37,000 sq. ft. in Jasper, Ga., from Ziegler Healthcare Real Estate Fund II LLC. The buildings are 100 percent leased. Griffin-American assumed an existing mortgage valued at approximately $6.3 million and paid the remaining price in cash. Chris Bodnar and Lee Asher, of CBRE, helped negotiate this transaction.

These acquisitions bring Griffin-American’s portfolio to 121 buildings, valued at approximately $1.1 billion.

“Reaching the $1 billion mark in aggregate portfolio value, based on purchase price, is a key milestone for Griffin-American Healthcare REIT II,” said the REIT’s President and CEO Danny Prosky in a statement. “Size and scale can be very important in terms of real estate portfolio operations, efficiency and potential enhanced value of the REIT as a whole. The REIT has now grown to the size where it is one of the largest and most significant owners of healthcare-related real estate in the country.”

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish