Griffin-American Healthcare REIT IV, co-sponsored by American Healthcare Investors and Griffin Capital Company, LLC, sought to acquire a nine-facility portfolio for approximately $110 million. The Central Florida Senior Housing Portfolio has 1,140 units totaling approximately 814,000 square feet of assisted living, independent living and memory care space. Arnall Golden Gregory has long counselled Griffin-American on its transactions and was called upon to advise on this deal.
The Central Florida Senior Housing Portfolio properties are located throughout Greater Tampa and Greater Orlando. AGG provided overall transaction counsel, advising on real estate, healthcare regulatory, corporate and tax matters. The acquisition was completed pursuant to a joint venture with an affiliate of Meridian Senior Living, LLC, which will manage the portfolio on a day-to-day basis. AGG’s assistance included doing transaction structuring and acquisition due diligence, which includes real estate, corporate and healthcare due diligence, such as reviewing surveys, licenses, permits, payer agreements, compliance program status and HIPAA. AGG also performed the regulatory change of ownership (CHOW) work. One unusual aspect of the deal was that Medicaid payments made to the facilities come through managed care organizations, so AGG interacted with both the Medicaid agency and six managed care organizations. Managed care organizations contract with the state to enroll providers to receive Medicaid funds for programs that typically do not fall under Medicaid. AGG also worked with the portfolio manager Meridian to ensure that it was ready to begin work as of the closing date.
In a press release after the deal closed, Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV, said “The addition of Central Florida Senior Housing Portfolio provides the REIT with a significant footprint in Florida amidst a large and aging population that is increasingly likely to transition to senior living communities.”