Grubb & Ellis Healthcare REIT II announced the acquisition of a five-building portfolio of skilled nursing facilities located throughout Philadelphia for $75 million.
In aggregate the portfolio has approximately 392,000 sq. ft. and 1,200 patient beds.
Since 2001, more than $33 million in capital improvements have been completed throughout the portfolio, which is now leased to Mid-Atlantic Health Care, LLC through June 2026 with three five-year renewal options and one 59-month renewal option. Under the terms of the bond net lease, Mid-Atlantic is responsible for all portfolio operational and maintenance expenses.
“Skilled nursing facilities comprise a significant portion of the Grubb & Ellis Healthcare REIT II portfolio because they serve a growing segment of our population and there is a fairly constrained supply,” said Danny Prosky, president and chief operating officer. “As a result of this acquisition, we are now one of the largest owners of skilled nursing facilities in Philadelphia.”
The acquisition includes the following properties:
- Care Pavilion of Walnut Creek is a three- and four-story skilled nursing facility comprised of 396 beds and 139,000 square feet on a 2.27-acre parcel.
- Cheltenham York Road Nursing & Rehabilitation Center is a three-story skilled nursing facility comprised of 240 beds and 60,000 square feet on a 2.39-acre parcel.
- Cliveden Convalescent Center is a three-story skilled nursing facility comprised of 180 beds and 59,000 square feet on a 1.32-acre parcel.
- Maplewood Manor is a four-story skilled nursing facility comprised of 180 beds and 69,000 square feet on a 1.63-acre parcel.
- Tucker House Nursing Home is a four-story skilled nursing facility comprised of 180 beds and 65,000 square feet on a 1.16-acre parcel.
The five skilled nursing facilities were acquired from New Courtland Elder Services, Inc., an unaffiliated third party represented by Aaron Kneas and Dan Brown of Creative Health Capital, LLC. Grubb & Ellis Healthcare REIT II financed the acquisition using borrowings under its lines of credit with Keybank, N.A., and Bank of America, N.A., as well as with cash proceeds from its offering.
As of June 24, 2011, Grubb & Ellis Healthcare REIT II has sold approximately 28,669,204 shares of its common stock, excluding the shares issued under it distribution reinvestment plan, for approximately $286,078,000 through its initial public offering.
