By Alex Girda
Sacramento, Calif.–The sponsors of Griffin-American Healthcare REIT IV have gone public with the news that the investment trust is set to acquire a Sacramento-area medical office facility. The American Healthcare Investors and Griffin Capital Corp.-controlled entity has lined up the Auburn Medical Office Building as its latest addition to the portfolio.
Located at 3200 Bell Road, in the proximity of the Sutter Auburn Faith Hospital, the medical office building is fully leased to the UC Davis Medical Group. The tenant has occupied the property since its completion in 1997, holding it on a triple net lease. The Medical Group offers services that include primary care, pediatrics, obstetrics and gynecology, as well as imaging and laboratory procedures. The property comprises a total of 19,000 square feet of space. The facility also offers proximity to the Sutter Auburn Surgery center, in an area that has a large number of undeveloped lots.
Auburn is the county seat of Placer County and provides a number of opportunities for growth in the Sacramento metro. The metro is one of the fastest growing in the entire nation in terms of rent growth, with rising demand pushing prices and rates higher for a few years now.
Real estate data provider Yardi Matrix rated Sacramento as second in terms of year-over-year rent growth in April 2016, with the metro only trailing the booming Seattle market. Strong employment growth and a low-debit development pipeline ensure that the market will continue to grow, fostering further improvement for all economic drivers, of which health services is one of the most important.
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