Grubb & Ellis Healthcare REIT II announced it has expanded its credit facility with Bank of America from $25 million to $45 million.
“The continued support we’re receiving from Bank of America speaks volumes about Grubb & Ellis Healthcare REIT II and the quality of the management team and product we provide to our investors,” said Jeff Hanson, chairman and chief executive officer.
The credit facility matures on July 19, 2012, but may be extended at the option of Grubb & Ellis Healthcare REIT II for an additional year upon meeting certain conditions. The modified credit facility eliminates a previous all-in interest rate floor of 5 percent and bears interest at a rate equal to LIBOR plus 3.50 percent, down from 3.75 percent.
“Since beginning property acquisitions in March 2010, we have built one of the best performing portfolios among non-traded REITs,” said Danny Prosky, president and chief operating officer. “Our expanded credit line with Bank of America will enable more rapid growth and further strengthen the REIT on behalf of our shareowners.”
Grubb & Ellis Healthcare REIT II said it hopes 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. As of April 22, 2011, it has sold approximately 23,120,666 shares of its common stock, excluding the shares issued under it distribution reinvestment plan, for approximately $230,681,000 through its initial public offering, which began at the end of the third quarter of 2009.
Grubb & Ellis Healthcare REIT II offers a monthly distribution of 6.5 percent per annum and has made 19 geographically diverse acquisitions comprised of 33 buildings valued at approximately $262 million, based on purchase price in the aggregate.