Griffin-American Healthcare REIT IV Buys Medical Office Building in California
Griffin-American Healthcare REIT IV, Inc. has acquired the Auburn Medical Office Building, an approximately 19,000-square-foot medical office building in Auburn, California, from Kargan Holdings, LLC.
Terms of the transaction, which was announced June 29, were not disclosed. Griffin-American Healthcare REIT IV financed the acquisition utilizing cash on hand.
Currently, the Auburn Medical Office Building is 100% leased to The Regents of the University of California for the benefit of UC Davis Medical Group, a member of the UC Davis Health System, which has occupied the building since it was built in 1997.
Several health care services are presently provided in the building, including primary care and specialty services such as cardiology, pediatrics, obstetrics and gynecology, orthopaedics, imaging, and laboratory procedures.
Auburn Medical Office Building is also situated within one block of the 72-bed Sutter Auburn Faith Hospital.
“Auburn Medical Office Building is an ideal acquisition for Griffin-American Healthcare REIT IV,” Danny Prosky, president and chief operating officer of Griffin-American Healthcare REIT IV and a principal of American Healthcare Investors, said in a prepared statement. “It is 100% leased to an exceptional tenant that has been in occupancy for nearly 20 years and enjoys an institutional grade credit rating of Aa2 from Moody’s Investor Services. Additionally, it is located in close proximity to a significant acute care hospital and plays an important role in the regional healthcare delivery system.”
Newmark Grubb Knight Frank’s Todd Perman, Dana Hamric, Garth Hogan and Joey Dillard represented Kargan Holdings, LLC in the deal. Griffin-American Healthcare REIT IV was represented by Newmark Cornish & Carey’s Jeff Traynor.
Griffin-American Healthcare REIT IV is co-sponsored by Los Angeles-based, privately-held investment and asset management firm Griffin Capital Corporation and Irvine, California-based investment management firm American Healthcare Investors, which specializes in the management and acquisition of health care-related real estate.
Written by Mary Kate Nelson