Griffin American Healthcare REIT III, which launched earlier this year, has been making a splash during the last half of 2014. After announcing in October an agreement to acquire a portfolio of medical office buildings in New York, New Jersey, Massachusetts and Kentucky for $135 Million, the REIT has entered into an agreement to purchase the Forest Park Medical Center (real estate) in Southlake, Texas for $128 Million. The Forest Park Medical Center is a 54 bed, 142,000 square foot hospital that opened in 2013. The hospital prides itself on state-of-the-art surgical facilities and using the most advanced technology in its offerings, which range from plastic surgery and spine surgery to gynecology and oncology. Forest Park Medical Center Southlake is physician owned so does not see patients from Medicare or Medicaid.
The hospital was developed by the Neal Richards group of Dallas Texas which also developed the connecting medical office building (MOB). The transaction, at $128 million, works out to $898 per square foot. That would make it the highest valued hospital trade (on a per sq. ft. basis) we have recorded this year. Last year, Sabra Healthcare REIT paid $876 per square foot for the Forest Park Medical Center in Frisco, TX (real estate).