Under the $68.5 million deal, Good Shepherd’s Institute for Healthy Living and Medical Plaza buildings were sold to Griffin-American Healthcare REIT III, a California-based publicly-registered, non-traded real estate investment trust, according to the report. Good Shepherd will still serve as operator of the facilities, and “leases with non-Good Shepherd entities in buildings included in the sale were transferred to Griffin-American Healthcare,” the report reads.
“It has been common business practice within healthcare entities to divest themselves of medical office buildings that are not core to ‘healthcare operations,'” Good Shepherd CEO Steve Altmiller said in a statement. “Property management, leasing, facility maintenance and improvements are better managed by real estate operators rather than health care operators.”
Good Shepherd has struggled financially. Toward the end of 2014, Good Shepherd Medical Center received a credit downgrade from “BB+” to “BB-“.
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