Six Georgia Nursing Facilities Part of $174M Purchase
- Jan 22, 2012
Griffin-America HealthCare REIT II—formerly known as Grubb & Ellis Healthcare REIT II—has recently acquired 10 skilled nursing facilities and one medical office building for approximately $174.3 million.
The facilities, sold by affiliates of Wellington Healthcare Services, LP, are spread throughout five states. Six facilities are located in Georgia:
• Bell Minor Facility is a single-story, 104-bed property totaling 39,000 square feet and is located at 2200 Old Hamilton Place NE in Gainesville, Ga.
• Buckhead Facility, at 5081 Pharr Court South, Atlanta, is a five-story, 220-bed property totaling 77,000 square feet
• New London Facility, at 2020 McGee Road, Snellville, Ga. is a single-story, 144-bed property totaling 45,000 square feet
• Riverside Facility is located at 5100 West St., Covington, Ga. It is a single-story, 158-bed property totaling 42,000 square feet
• Rockdale Facility is located at 1510 Renaissance Drive, Conyers, Ga. It is a single-story, 102-bed property totaling 48,000 square feet
• Westminster Facility, located at 560 St. Charles Ave. NE, Atlanta, is a two-story, 84-bed property totaling 20,000 square feet
The other facilities are located in the states of Texas, Tennessee, Louisiana and Alabama. Totaling approximately 454,000 square feet, the ten nursing facilities add 1,364-beds to the skilled nursing facility portfolio of Griffin-American Healthcare REIT II; built between 1969 and 1999, the 10 buildings are master leased through 2027 by affiliates of Wellington Healthcare Services LP, a leading provider of skilled nursing and rehabilitation services.
“These properties are each an ideal fit for the clinical healthcare acquisition strategy of Griffin-American Healthcare REIT II,” said Danny Prosky, president and chief operating officer. “We focus on institutional-grade healthcare facilities that are accretive to our bottom line, that support our investor distribution, and that are likely to add the highest value to our nationwide portfolio. These acquisitions meet each of those requirements.”
According to an official release, Griffin-American Healthcare REIT II financed the acquisition through the assumption of nine separate U.S. Housing and Urban Development loans totaling $70.5 million, the assumption of a $12.7 million loan with Capital Funding Group, $38.4 million in borrowings under its line of credit with Bank of America, N.A., $20.0 million in borrowings under its line of credit with KeyBank, as well as net cash proceeds received from its offering.