Senior Housing: Grubb & Ellis, HTA Finish Divorce

NEW YORK – Bringing an end to four years of dickering and legal maneuvers, Grubb & Ellis Co. and Healthcare Trust of America Inc. have signed a redemption, termination and release agreement with an $8 million payout.

Scottsdale, Ariz.-based HTA redeemed all partnership interests and other rights that Grubb & Ellis held in its operating partnership, including those related to a subordinated distribution for liquidity events.

HTA’s one-time $8 million payment translates into a $3 million “beneficial impact” on Grubb & Elli’s fourth quarter earnings. The agreement is the final stage of the two companies’ divorce.

HTA, formed four years ago, has acquired about $344.5 million of medical office and healthcare-related assets since the beginning of 2010. The 2010 acquisitions, totaling 1.5 million square feet, are 98 percent leased. The average remaining lease term is 8.2 years.

HTA’s entire portfolio, part of which is related to the split up, is valued at $1.8 billion in 68 properties. The 8.9-million-square-foot portfolio contains 189 medical office buildings, six hospitals, nine skilled nursing and assisted living facilities and four other office buildings located in 24 states.


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