Griffin-American REIT Buys $24M MOB in Seattle

By Alex Ciorogar

Edmonds Medical Office Building

Griffin-American Healthcare REIT IV Inc.—backed up by American Healthcare Investors and Griffin Capital Co.—has purchased Edmonds Medical Office Building, a 55,000-square-foot health facility in Edmonds, Wash., for $23.5 million. The REIT financed the acquisition using cash on hand and borrowings under its revolving line of credit with Bank of America and Keybank. 

Located within a thriving medical corridor in Greater Seattle, the property provides easy access to Pacific Highway, 216th Street S.W, 212th Street S.W. and 220th Street S.W. Swedish Edmonds, a 217-bed hospital campus, is also nearby. Built in 1991, the building was completely renovated in 2007 and extended by 14,000 square feet.

The property was fully leased at the time of the sale to some of the largest health systems in the region: Virginia Mason Health System—which occupies approximately 60 percent of the building—and Swedish Health Services, a member of Providence St. Joseph Health, which leases roughly 12 percent of the property.

“The building is in close proximity to one of the area’s busiest hospitals and enjoys a healthy average remaining lease term of approximately eight years,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV, in a prepared statement. 

CBRE Vice Chairmen Chris Bodnar and Lee Asher represented the seller, an unaffiliated third party. Recently, the REIT also acquired Surprise Medical Office Building, a Class A facility that is part of a 756-acre master-planned community in the Northwest Valley of Phoenix.

Image via Google Earth