After a busy Spring growing its medical office building portfolio, Griffin-American Healthcare REIT IV jumped back into the senior care M&A market to acquire eight skilled nursing facilities in Missouri, at a price of $88.2 million, or $79,300 per bed. The portfolio, comprising 1,112 licensed beds, is well performing and will be leased under a 15-year absolute net lease with two 10-year renewal options and CPI-based rent escalators with a floor of 2% and a cap of 3%. Griffin-American also diversifies its geography and asset class with the deal.
Its last senior care deal was on the small side (a $22.6 million acquisition of two Wisconsin properties announced in March 2018), but 2017 was an especially fruitful year for G-A IV (its first full year in action). The REIT acquired 22 seniors housing properties in three deals, the largest being its $109.5 million purchase of nine senior living communities operated by Holiday Retirement and owned by New Senior Investment Group.
In total, since making its first acquisition in June 2016, Griffin-American IV has purchased 45 properties, including MOBs and senior care facilities, in 16 states, for an aggregate contract purchase price of about $536.1 million. Its target is to have a 90-property portfolio under its belt, representing another approximate $335 million in pending acquisitions. Then maybe Griffin-American V?
