REIT Lands Battle Creek Medical Office Building
- Mar 14, 2017
Battle Creek, Mich.—The co-sponsors of Griffin-American Healthcare REIT IV Inc., American Healthcare Investors and Griffin Capital Company LLC., recently announced the REIT’s purchase of Battle Creek Medical Office Building, a nearly 46,000-square-foot property in Battle Creek, Mich. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand.
Located on a 7.3-acre parcel, at 3600 Capital Ave., the multi-tenant medical office building is currently approximately 97 percent leased and anchored by Ambulatory Surgery Associates LLC, a company that does business as Brookside Surgery Center. Battle Creek Medical Office Building is located within a medical office park adjacent to the newly completed 65,000-square-foot Borgess Health Park.
Situated on the edge of a commercial and residential area, the property houses a plethora of medical practices and services, including: outpatient surgical procedures in general surgery, gynecology, hand surgery, ophthalmology, otolaryngology, orthopedics, pain management, plastic surgery, podiatry and urology. Recently, the Brookside Surgery Center signed a new lease and occupies roughly 14,000 square feet, or 31 percent of gross leasable area, through 2027. The company invested almost $1.2 million in tenant improvements at the property. The remaining leaseholders include a variety of complementary medical tenants, most of whom are on lengthy triple-net leases.
“The property holds a Certificate of Need for Brookside Surgery Center and is in close proximity to Bronson Hospital – Battle Creek and Borgess Health Park, which both may help to ensure the long term stability of the investment,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV, in prepared remarks.
Griffin-American Healthcare REIT IV acquired its first property in June 2016 and has since acquired a portfolio of 13 medical office buildings and senior housing facilities. Last year, the Los Angeles-based REIT purchased a Sacramento-area medical office facility.
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