Grubb & Ellis Healthcare REIT II, Inc. today announced that it has acquired Athens Long-Term Acute Care Hospital, a single-story, 32,000-square-foot, Class A single-tenant medical facility in Athens. The acquisition closed on Oct. 29.
Athens Long-Term Acute Care Hospital is approximately one mile from Athens Regional Medical Center, the region’s leading healthcare provider and a significant source of referral patients. Athens Long-Term Acute Care Hospital is the only long-term acute care hospital serving the more than one million residents of northeast Georgia.
Built in 2008, Athens Long-Term Acute Care Hospital is leased by Landmark Real Estate Holdings, LLC, which signed a long-term lease through 2025. The Athens facility is the third of a $42 million, four-property portfolio of regional long-term acute care hospitals being acquired by Grubb & Ellis Healthcare REIT II. Similar facilities in Cape Girardeau and Joplin, Mo. were acquired by the REIT on Aug.12 and Aug. 31, while a fourth facility in Columbia, Mo. is currently under contract.
“Long-term acute care hospitals such as the four we are acquiring in Missouri and Georgia are attractive additions to the portfolio of Grubb & Ellis Healthcare REIT II,” said Danny Prosky, president and chief operating officer of the REIT. “They enjoy very limited competition, have strong relationships with major healthcare systems, and provide stable long-term income that is immediately accretive and supportive of our investor distributions.”
Creative Health Capital, LLC represented the seller, White Oaks Real Estate Investments of Georgia, LLC, an unaffiliated third party, in the transaction. Grubb & Ellis Healthcare REIT II financed the acquisition using $12.3 million in borrowings under its line of credit with Bank of America, N.A and cash proceeds received from its offering.
About Grubb & Ellis Healthcare REIT II
Grubb & Ellis Healthcare REIT II, Inc. intends to qualify as a real estate investment trust that seeks to preserve, protect and return investors’ capital contributions, pay regular cash distributions, and realize growth in the value of its investments upon the ultimate sale of such investments. Grubb & Ellis Healthcare REIT II is seeking 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.
Grubb & Ellis Healthcare REIT II is sponsored by Grubb & Ellis Company (NYSE: GBE). Grubb & Ellis is one of the largest and most respected commercial real estate services and investment companies in the world. Grubb & Ellis Company’s 6,000 professionals in more than 100 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors. The firm’s transaction, management, consulting and investment services are supported by highly regarded proprietary market research and extensive local expertise. Through its investment subsidiaries, the company is a leading sponsor of real estate investment programs that provide individuals and institutions the opportunity to invest in a broad range of real estate investment vehicles, including publicly registered non-traded real estate investment trusts (REITs), mutual funds, separate accounts and other real estate investment funds. For more information, visit www.grubb-ellis.com.