Griffin-American Healthcare REIT III acquired nine healthcare buildings in five states, the United Kingdom and Isle of Man, as well as a collateralized debt instrument, for an aggregate purchase price of approximately $180 million during the third quarter of 2015. The acquisitions included three seniors housing facilities and six medical office buildings.
“We continue to acquire accretive assets for the quickly growing portfolio of Griffin-American Healthcare REIT III,” said Danny Prosky, president, chief operating officer, interim chief financial officer and one of the largest stockholders of the REIT. “With these latest acquisitions, our portfolio is valued in excess of $1.1 billion, based on purchase price, and we have more than $1 billion in additional pending acquisitions that we expect to close in the coming months.”
The REIT’s third-quarter 2015 acquisitions in seniors housing:
Tanglewood Trace Senior Living Community, Mishawaka, IN. This community is the final facility that is part of Mountain Crest Senior Housing portfolio, which includes six senior living communities in northern Indiana and southwestern Michigan totaling 653 rental units and approximately 585,000 square feet. Griffin-American Healthcare RE III completed the acquisition of five of the facilities during the second quarter of 2015.
The portfolio of six senior living communities is managed on behalf of the REIT by Ridgeline Management Company and is 100% private-pay. At the time of acquisition, the average aggregate occupancy of the six senior living communities was about 86%.
The Mountain Crest portfolio was acquired from LaPorte Retirement, Hobart Retirement, Niles Retirement, Elkhart Retirement, CW and Eastlake, all unaffiliated third parties represented by Nick Glaisner of Ziegler.
Richmond VA Assisted Living Facility, North Chesterfield, VA. This is a four-story, approximately 210,000-square-foot assisted living facility located in suburban Richmond. Built in 2009, the property consists of 109 independent living units, 59 assisted living units and 18 memory care units.
The facility was 93% leased at the time of acquisition and will continue to be operated by an affiliate of the seller, Harmony Senior Services, on behalf of Griffin-American Healthcare REIT III. The facility was acquired from Caba SH Investors and Caba Operations, unaffiliated third parties represented by Tim Cobb of Blueprint Healthcare Real Estate Advisors.
Crown Senior Care Portfolio, United Kingdom. The Crown Senior Care portfolio consists of six care homes located within the United Kingdom countries of England and Scotland, as well as Isle of Man, a self-governing British Crown dependency in the Irish Sea. The portfolio has 317 beds, with an average occupancy of about 91%.
Griffin-American Healthcare REIT III is acquiring the portfolio in multiple tranches, completing the acquisition of one of the care homes, representing 66 beds, during the third quarter of 2015. The first care home of the Crown Senior Care Portfolio was acquired from Bettisfield Limited, an unaffiliated third party, and the borrower. The portfolio is being purchased from five sellers and subsequently leased to and operated by Caring Homes Group under a 35-year absolute net lease.
Griffin-American Healthcare REIT III completed each of the third quarter acquisitions using cash on hand as well as the assumption of existing loans totaling approximately $10 million and $38 million associated with the acquisition of Tanglewood Trace Senior Living Community and Richmond VA Assisted Living Facility, respectively. Including these acquisitions, the Griffin-American Healthcare REIT III portfolio has 69 medical office buildings, hospitals and seniors housing facilities, as well as two collateralized debt instruments.