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Griffin-American Healthcare REIT IV Acquires Nine-Property Central Florida Portfolio

November 7, 2017

Griffin-American Healthcare REIT IV Acquires Nine-Property Central Florida Portfolio

November 7, 2017 | James Sprow | Blue Vault

The cost of healthcare

Griffin-American Healthcare REIT IV Inc. completed the acquisition of a 1,140-unit, nine-property seniors housing portfolio in central Florida from New Senior Investment Group for roughly $110 million, at a capitalization rate of 7.03 percent. 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 transaction was completed through a joint venture with an affiliate of Meridian Senior Living LLC, which will be responsible for the day-to-day management of the portfolio. The trust owns roughly 98% 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.

“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.”

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., 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.

 

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