Grubb & Ellis Acquires Louisiana Hospital

Grubb & Ellis Healthcare REIT II, Inc. recently announced its acquisition of Lafayette Physical Rehabilitation Hospital, a 32-unit facility in Lafayette, La. that is master-leased to Lafayette Physical Rehabilitation Hospital, LLC until 2026.

The hospital is adjacent to both Heart Hospital of Lafayette and Lafayette Specialty Surgery Hospital.

“Lafayette Physical Rehabilitation Hospital is a strong addition to the Grubb & Ellis Healthcare REIT II portfolio that provides greater geographic, asset and economic diversification,” said Danny Prosky, president and chief operating officer of the REIT, in a statement. “In addition to sitting adjacent to two of the region’s premier specialty hospitals, the facility also accommodates patients from the six general acute care hospitals located within a 10-mile radius and is master leased for the next 15 years to an excellent operator.”


Lafayette Physical Rehabilitation Hospital is a 26,000 square foot, multi-specialty, physician-owned facility that was built in 2006. It provides a variety of rehabilitative services and treatments including physical and occupational therapy, speech pathology, and psychology.

Grubb & Ellis acquired the hospital from HFG Lafayette, LLC, an unaffiliated third party represented by Mike Coiro and Bill Bennett of Capital Hospital Finance Group. Grubb & Ellis financed the acquisition using $12.0 million in borrowings under its line of credit with KeyBank National Association and cash proceeds received from its offering.

The company’s property portfolio held debt equalling approximately 26.8% of its value, based on purchase price in the aggregate, as of Sept. 15, 2011.


As of Sept. 23, 2011, the REIT has sold nearly 38.4 million shares of its common stock excluding shares issued under its distribution reinvestment plan, for approximately $382,988,000, through its initial public offering.

To date, Grubb & Ellis Healthcare REIT has made 24 acquisitions consisting of 55 buildings valued at approximately $430.8 million.

Written by Alyssa Gerace