Healthcare: Griffin-American Pays $174.3M for 11 Properties in 5 States

ATLANTA – In a $174.3 million transaction, Griffin-American Healthcare REIT II has scooped up 10 skilled nursing facilities with 1,364 beds in Georgia, Tennessee, Louisiana and Alabama plus a 60,000-square-foot medical office building in Texas.

Patrick Hurst, Matt Ryan and Michael Hoagberg of Houlihan Lokey represented Wellington Healthcare Services LP in its disposition of the skilled nursing centers. Chris Bodnar of CB Richard Ellis represented PHT Investment Holdings LLC in the sale of the Sierra Providence East Medical Plaza I in El Paso.

Georgia has the largest concentration in the portfolio – six nursing facilities in Gainesville, Snellville, Covington, Conyers and two in Atlanta. Formerly Grubb & Ellis Healthcare REIT II, the California-based buyer’s medical office property is part of the 42-acre campus of the 110-bed Sierra Providence East Medical Center. The three-story medical office building, delivered in 2008, is 90 percent leased to 13 tenants, including the medical campus’ owner, Dallas-based Tenet Healthcare.

The nursing facilities total 454,000 square feet in designs ranging from 20,000 square feet to 77,000 square feet. The 10 buildings, developed between 1969 and 1999, are master leased through 2027 by Wellington affiliates.

The Georgia properties are:

• Bell Minor Facility: 2200 Old Hamilton Place NE, Gainesville. A single-story, 104-bed property totaling 39,000 square feet.

• Buckhead Facility: 2920 Pharr Court South, Atlanta. A five-story, 220-bed property totaling 77,000 square feet.

• New London Facility: 2020 McGee Road, Snellville. A single-story, 144-bed property totaling 45,000 square feet.

• Riverside Facility: 5100 West St., Covington. A single-story, 158-bed property totaling 42,000 square feet.

• Rockdale Facility: 1510 Renaissance Drive, Conyers. A single-story, 102-bed property totaling 48,000 square feet.

• Westminster Facility: 560 St. Charles Ave. NE, Atlanta. A two-story, 84-bed property totaling 20,000 square feet.

In Tennessee, Griffin-American Healthcare REIT acquired an 85-bed, 33,000-square-foot nursing facility at 5081 Easley St., in Millington and a 120-bed, 38,000-square-foot Parkway facility at 200 S. Parkway West in Memphis.

The Alabama purchase was the 120-bed, 46,000-square-foot Sea Breeze facility at 550 Congress St. in Mobile. In Louisiana, the buyer took the deed to a 227-bed, 66,000-square-foot facility at 1736, Irving Place in Shreveport.

The portfolio deal closed with the buyer assuming nine separate U.S. Housing and Urban Development loans totaling $70.5 million and a $12.7 million loan with Capital Funding Group; drawing down $38.4 million from its line of credit with Bank of America; $20 million in borrowings under a line of credit with KeyBank; and net cash proceeds received from its offering. The REIT financed the medical office building with cash proceeds from its offering, which has reaped about $472.85 million since its launch in late December.

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