Colorado Real Estate Journal -
A Greeley medical office portfolio that traded for $15.03 million was among $47 million in acquisitions announced by American Healthcare Investors and Griffin Capital Corp., cosponsors of Griffin-American Healthcare REIT II Inc. The Northern Colorado portfolio consists of three buildings across the street from the 378- bed North Colorado Medical Center. They were 93 percent occupied, almost entirely by University of Colorado Health. UCH’s lease expires in 2020. The buildings included the Greeley Medical Clinic at 1900 16th St., which totals about 73,000 square feet, an approximately 18,000-sf medical office building at 1675 18th Ave. and a 9,700-sf building at 2000 16th. They were built in 1974 and renovated in 2011. There were multiple offers for the portfolio, according to Kyle Lundy of Sperry Van Ness/The Group Commercial LLC, who represented the seller, Concordia Company of Greeley LLP, with SVN/The Group Commercial broker Craig Hau. John Gustafson of Newmark Grubb Knight Frank represented the buyer. Griffin-American Healthcare REIT II now owns six medical office buildings totaling more than 250,000 sf in Greeley, Highlands Ranch and Westminster. Griffin-American Healthcare REIT II also purchased the A&R Medical Office Building Portfolio in Abilene, Texas, and Ruston, La. The portfolio comprises two single-tenant, physician clinic-occupied medical office buildings totaling approximately 183,000 sf. The buildings are on the campuses of the 231-bed Abilene Regional Medical Center and 159-bed Northern Louisiana Medical Center. Each is occupied by its city’s largest multispecialty physician group. Griffin-American Healthcare REIT II financed the acquisitions using $44 million in borrowing under its unsecured line of credit with Bank of America, as well as cash on hand. The REIT’s portfolio totals 148 buildings valued at approximately $1.4 billion in 27 states. Since Jan. 1, 2012, the portfolio has grown by approximately 213 percent based on purchase price. As of Sept. 30, it 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. “Since the beginning of 2012, our nationwide portfolio of medical office buildings, hospitals, skilled nursing facilities and assisted-living facilities has more than tripled, based on aggregate acquisition price,” Danny Prosky, a principal of American Healthcare Investors and chief operating officer of the REIT, said in a press release. “With each acquisition, Griffin-American Healthcare REIT II becomes more broadly diversified as we execute our strategic plan to build a well-balanced portfolio of clinical health care-related real estate.”