Griffin-American Healthcare REIT II (formerly Grubb & Ellis Healthcare REIT II) recently acquired three medical office buildings across three Southeastern states for $25.1 million.
The buildings have an aggregate 117,000 square feet and all have high occupancy; each one is located either on or near a regional medical campus.
“We believe the aging of America is driving demand for healthcare services constantly higher throughout the country,” said Danny Prosky in a statement. “Griffin-American Healthcare REIT II is designed to take advantage of this demographic wave through the acquisition of clinical healthcare facilities that produce immediate income for our investors. These latest additions to our portfolio meet these criteria and build upon our institutional-quality nationwide portfolio.”
With the acquisition, the company’s portfolio has expanded to 70 buildings valued at approximately $630 million, based on purchase price.
The properties include:
Boynton East Medical Office Building, in Boynton Beach, Fla., a two-story, 28,000 square foot facility built in 2003 on the campus of Bethesda Memorial Hospital. It is 95% leased to eight tenants, the largest of which is Bethesda Memorial, who occupies more than 46% of the building.
East-West Medical Office Building, in Austell, Ga., a single-story, 42,000 square foot facility built in 1999 nearby WellStar Cobb Hospital. It is 100% leased by two tenants, and 79% by Ortholink Physicians Corporation.
Okatie Medical Office Building, in Okatie, S.C., a three-story, 47,000 square foot facility that is approximately 91% leased to three tenants, including Hilton Head Regional Healthcare System, who occupies nearly 82% of the building.
The acquisition of these three properties was financed through the assumption of $11.9 million of existing debt, $12 million in borrowings under its line of credit with Bank of America, N.A., and net cash proceeds received from the REIT’s offering.
As of Sept. 30, 2011, the company’s property portfolio was 97% leased.
Written by Alyssa Gerace