Healthcare: Grubb & Ellis Healthcare REIT II Acquires Sylva Medical Office Building in North Carolina
SYLVA, N.C., Nov. 22, 2010 /PRNewswire/ — Grubb & Ellis Healthcare REIT II, Inc. today announced that it has acquired Sylva Medical Office Building, a three-story, 45,000-square-foot, Class A single-tenant medical office building on the campus of Harris Regional Hospital in Sylva. The acquisition closed on Nov. 15.
Located at 98 Doctors Drive, Sylva Medical Office Building is on the campus of the 86-bed Harris Regional Hospital, an acute care facility that serves the residents of Jackson County and neighboring communities in western North Carolina. Carolinas HealthCare System, one of the leading healthcare organizations in the Southeast, manages the hospital on behalf of its owner, WestCare Health System.
“Grubb & Ellis Healthcare REIT II is committed to building a diverse portfolio of income-producing healthcare-related properties that are accretive and supportive of our investor distribution,” said Danny Prosky, president and chief operating officer. “This strategy allows us to provide our stockholders with dependable income and superior long-term financial performance.”
Built in 2010, the property is leased to Harris Regional Hospital, which signed a long-term lease through 2025.
Sylva Medical Office Building was acquired from CDP-Sylva LLC, an unaffiliated third party represented by Doug Connell, senior vice president, Investment Group in Grubb & Ellis Company’s Atlanta office. Grubb & Ellis Healthcare REIT II financed the acquisition using $11.4 million in borrowings under its line of credit with Bank of America, N.A and cash proceeds received from its offering.
As of Nov. 5, 2010, Grubb & Ellis Healthcare REIT II has sold approximately 12,068,577 shares of its common stock, excluding the shares issued under it distribution reinvestment plan, for approximately $120,375,000 through its initial public offering, which began at the end of the third quarter of 2009.
To date, the REIT has made 11 geographically diverse acquisitions comprised of 21 buildings valued at approximately $162 million, based on purchase price.
About Grubb & Ellis Healthcare REIT II
Grubb & Ellis Healthcare REIT II, Inc. intends to qualify as a real estate investment trust that seeks to preserve, protect and return investors’ capital contributions, pay regular cash distributions, and realize growth in the value of its investments upon the ultimate sale of such investments. Grubb & Ellis Healthcare REIT II is seeking to raise up to approximately $3 billion in equity and to acquire a diversified portfolio of real estate assets, focusing primarily on medical office buildings and other healthcare-related facilities.
Grubb & Ellis Healthcare REIT II is sponsored by Grubb & Ellis Company (NYSE: GBE). Grubb & Ellis is one of the largest and most respected commercial real estate services and investment companies in the world. Grubb & Ellis Company’s 6,000 professionals in more than 100 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors. The firm’s transaction, management, consulting and investment services are supported by highly regarded proprietary market research and extensive local expertise. Through its investment subsidiaries, the company is a leading sponsor of real estate investment programs that provide individuals and institutions the opportunity to invest in a broad range of real estate investment vehicles, including publicly registered non-traded real estate investment trusts (REITs), mutual funds, separate accounts and other real estate investment funds. For more information, visit www.grubb-ellis.com.
This release contains certain forward-looking statements (under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) with respect to Sylva Medical Office Building’s occupancy, whether its proximity to Harris Regional Hospital is beneficial, whether our property acquisitions are and will continue to be accretive and supportive of our investor distributions, and whether our acquisition strategy can provide our stockholders with dependable income and superior long-term financial performance. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: the strength and financial condition of Sylva Medical Office Building and its tenant; uncertainties relating to the financial strength of Harris Regional Hospital and the local economy of Jackson County, North Carolina; uncertainties relating to our ability to build a diverse portfolio of income-producing healthcare-related properties that are accretive and supportive of our investor distribution and our ability to provide shareowners with dependable income and superior ling-term financial performance; uncertainties relating to changes in general economic and real estate conditions; uncertainties regarding changes in the healthcare industry; the uncertainties relating to the implementation of our real estate investment strategy; and other risk factors as outlined in the company’s prospectus, as amended from time to time, and as detailed from time to time in our periodic reports, as filed with the U.S. Securities and Exchange Commission. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events. We claim the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
THIS IS NEITHER AN OFFER TO SELL NOR AN OFFER TO BUY ANY SECURITIES DESCRIBED HEREIN. OFFERINGS ARE MADE ONLY BY MEANS OF A PROSPECTUS OR OFFERING MEMORANDUM.
SOURCE Grubb & Ellis Healthcare REIT II