Grubb & Ellis Healthcare REIT II, Inc. (NYSE: GBE) recently entered into a secured revolving credit facility with KeyBank, National Association, the corporation announced. The credit facility is for $71.5 million, but this amount can be increased to $100 million if Grubb & Ellis meets certain conditions.
“Since March 2010, Grubb & Ellis Healthcare REIT II has built a portfolio of healthcare-related properties valued at approximately $411 million, based on purchase price,” says Jeff Hanson, chairman and CEO. “We have more than doubled our investments since the beginning of 2011, and thanks in part to lending partners like KeyBank, we are equipped to continue our aggressive pursuit of acquisitions that are accretive and supportive of our investor distributions.”
The corporation reports that to date, it has made 22 “geographically diverse” acquisitions which consist of 53 buildings valued at approximately $411 million. This represents a 78% increase since the close of the first quarter 2011, based on purchase price in the aggregate, says Grubb & Ellis.
The credit facility has an interest rate equal to KeyBank’s prime rate plus 0.75%, or LIBOR plus 3.50%, under most circumstances, says Grubb & Ellis; the facility matures on June 30, 2014, with an option of a one-year extension if the corporation meets certain conditions.
Grubb & Ellis also has a credit facility with Bank of America, National Association, which it expanded earlier this year to $45 million; the corporation stated its intentions to raise up to approximately $3 billion in equity for the purpose of acquiring a diversified portfolio of real estate assets which will primarily be focused on medical office buildings and other healthcare-related facilities.
Written by Alyssa Gerace