NEWPORT BEACH, Calif., Dec. 19, 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 Bellaire Medical Center in Houston and a three-building portfolio of senior care facilities in Massachusetts by the REIT for an aggregate purchase price of approximately $47.6 million.
Currently, the REIT's portfolio totals 125 buildings valued at approximately $1.14 billion, based on purchase price, diversified across 27 states. Since Jan. 1, 2012, the portfolio has grown by approximately 160 percent, based on purchase price. As of Sept. 30, 2012, the Griffin-American Healthcare REIT II property portfolio was 96.8 percent leased with a weighted average remaining lease term of approximately 9.4 years and leverage (total debt divided by total assets) of 32.8 percent.
"These latest acquisitions further expand and diversify the portfolio of Griffin-American Healthcare REIT II, which has nearly tripled in size since the start of 2012, based on aggregate purchase price," said Danny Prosky, a principal of American Healthcare Investors and president and chief operating officer of the REIT. "Our portfolio represents a broad spectrum of clinical healthcare real estate – medical office buildings, hospitals, skilled nursing facilities and assisted living facilities."
Bellaire Medical Center is a 154-bed long-term acute care center and behavioral rehabilitation hospital comprised of 161,000 square feet in the Houston suburb of Bellaire. The hospital sits on a full city block just four miles west of Texas Medical Center, the world's largest medical facility comprised of 45 million square feet of specialty hospitals, research facilities and wellness and prevention clinics. Originally built in 1978, Bellaire Medical Center has undergone multiple renovations, upgrades, expansions and remodels during the ensuing 34 years. Since 2008, approximately $6 million in improvements have been completed, with an additional $6.8 million slated to be invested to further expand the facility.
Bellaire Medical Center is 100 percent leased to Cornerstone Healthcare Group, which operates a 78-bed long-term acute care hospital at the medical center, and Ascend Health Corporation, which operates a 76-bed in-patient behavioral rehabilitation hospital on-site. The Ascend Hospital is currently undergoing an expansion that will increase the number of beds to 126. Both tenants are signed to long-term triple net leases.
The medical center was acquired direct from an unaffiliated third party, 5314 Dashwood, LP, a subsidiary of PinPoint Commercial. Griffin-American Healthcare REIT II financed the acquisition using $23.5 million in borrowings under its unsecured line of credit with Bank of America, N.A., and the remaining using cash on hand.
Massachusetts Senior Care Portfolio is a three-building portfolio comprised of skilled nursing and assisted living facilities in Boston and Dalton, Massachusetts. The portfolio totals 201 beds and approximately 104,000 square feet of space. The portfolio is master leased to Trinity Health Systems, LLC under an absolute net lease through 2027 with 3 percent annual rent escalations. Additionally, the lease includes four ten-year renewal options.
Massachusetts Senior Care Portfolio was acquired direct from Merrimack Health Group, Inc., an unaffiliated third party. The off-market acquisition was financed with $22 million in borrowings under Griffin-American Healthcare REIT II's unsecured line of credit with Bank of America, N.A., and the remaining using cash on hand.
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.
The American Healthcare Investors logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14402
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 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.