Investors buy medical building for $7.3M
A real estate investment trust has acquired a medical building in the region.
Irvine, California-based American Healthcare Investors and El Segundo, California-based Griffin Capital Company, co-sponsors of the Griffin-American Healthcare REIT IV, said yesterday the REIT acquired the two-story, 46,000-square-foot Battle Creek Medical Office Building, at 3600 Capital Ave. SW, for $7.3 million, according to an SEC filing.
The deal was financed with cash.
The building was acquired from Battle Creek Office Development Enterprises.
The acquisition is meant to further the reach of the REIT in Michigan and as a long-term hold, said Stefan Oh, EVP of acquisitions for Griffin-American Healthcare REIT IV.
The REIT also has a 30,000-square-foot building in Rochester Hills.
The Battle Creek Medical Office Building, which sits on 7.34 acres, is 97 percent occupied, including anchor tenant Ambulatory Surgery Associates.
Leasing until 2027, Ambulatory Surgery Associates occupies 31 percent of the building and has invested nearly $1.2 million in property improvements, the firms said. Other tenants include Southwest Eye Center and Great Lakes Plastic Reconstructive & Hand Surgery.
The office building is also near the newly constructed Borgess Health Park.
Since June 2016, the firms said Griffin-American Healthcare REIT IV has acquired a portfolio of 13 medical office buildings and senior housing facilities for about $146 million.