Healthcare: Grubb & Ellis Healthcare REIT II Picks Up Pair of Medical Office Buildings

via CoStar Research

Grubb & Ellis Healthcare REIT II acquired a pair of medical office properties, one located in Ennis, TX and another in Lawton, OK.

The two-building Lawton Medical Office property at 5604 and 5606 SW Lee Blvd. consists of two three-story single-tenant facilities totaling approximately 62,000 square feet on the campus of the 199-bed Southwestern Medical Center. The medical office buildings are fully leased to the medical center until 2023, with options that could extend the leases until 2033.

The Ennis Medical Office Building is a single-story, multi-tenant medical office building located adjacent to Ennis Regional Medical Center, a 60-bed acute-care facility that serves residents of the Dallas suburb. The medical office building is currently 95 percent leased to a variety of tenants, including a primary medical services provider, outpatient surgery center and an internal medicine practice.

The REIT acquired the Lawton medical office property for an undisclosed price from Southwestern MOB I, LLC. Grubb & Ellis Healthcare REIT II financed the acquisition using $9.8 million in borrowings under its line of credit with Bank of America and cash from its recent offering. Ennis Medical Office Building was acquired from New Bardwell Partners, LP, an unaffiliated third party represented by Jim Moloney of Cain Brothers. The REIT financed the acquisition using $7.35 million under its BOA line of credit and cash proceeds from its stock offering, which had raised approximately $143 million as of Dec. 17, 2010.

To date, the REIT reported that it has made 14 geographically diverse acquisitions comprised of 25 buildings valued at approximately $194 million, based on purchase price.


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