Senior Housing Portfolio Sells for $17M in Louisiana
- Dec 09, 2016
Lafayette, La.—American Healthcare Investors and Griffin Capital Corp., co-sponsors of Griffin-American Healthcare REIT IV Inc., announced that the REIT have acquired a 107-unit Lafayette Assisted Living Portfolio in Lafayette, La. The portfolio was sold by Hannie Development Inc. and Cedar Crest LLC, both of which are unaffiliated third parties represented by Sean McNee of Cushman & Wakefield. According to records filed with the federal Securities and Exchange Commission, the property traded for $16.8 million.
“The acquisition of Lafayette Assisted Living Portfolio adds diversification to the growing portfolio of Griffin-American Healthcare REIT IV with well-performing senior housing facilities leased to a proven operator under a long-term absolute net lease,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV, in prepared remarks.
The two buildings built in 1997 and 2015 offer 80,000 square feet of senior housing space with 107 licensed beds, 37 of which are dedicated to memory care residents. The portfolio is operated by Colonial Oaks Senior Living LLC, and leased to its affiliate under a 15-year absolute net lease. There are two 10-year renewal options and annual rent escalators of 6.3 percent after the first year and 2.5 percent thereafter.
The transaction was financed with cash proceeds from the REIT’s initial public offering and borrowings under its line of credit with Bank of America, N.A. and KeyBank, National Association.
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