SANTA ANA, Calif., Oct. 5, 2011 /PRNewswire/ -- Grubb & Ellis
Healthcare REIT II, Inc. today announced that it has entered into
an agreement to acquire the $166.5-million Southeastern Skilled Nursing
Facility Portfolio, comprised of 10 skilled nursing facilities in
Alabama, Georgia, Louisiana and Tennessee. The acquisition is subject to
customary closing conditions and the satisfaction of other
requirements as detailed in the agreement.
Totaling nearly 460,000 square feet, the 1,364-bed Southeastern
Skilled Nursing Facility Portfolio includes facilities that range
in size from 20,000 square feet to 82,000 square feet, with an
average size of 46,000 square feet. Built between 1969 and
1999, the 10 buildings are master leased through 2026 by Wellington
Healthcare Services LP, a leading provider of skilled nursing and
rehabilitation services.
"The Southeastern Skilled Nursing Facility Portfolio will be an
ideal acquisition for Grubb & Ellis Healthcare REIT II," said
Danny Prosky, president and chief
operating officer. "Upon completion, this major acquisition
will be accretive to our bottom line and will support our investor
distribution. Additionally, the facilities are strategically
clustered in states with attractive demographics and will be fully
occupied for the next 15 years by a highly respected and successful
operator."
The 10 buildings that comprise the Southeastern SNF Portfolio
are:
- Bell Minor Facility: 2200 Old Hamilton Place NE, Gainesville, Ga. A single-story, 104-bed
property totaling 43,000 square feet.
- Buckhead Facility: 2920 Pharr Court South, Atlanta. A five-story, 220-bed property
totaling 82,000 square feet.
- Millington Facility: 5081 Easley St., Millington, Tenn. A single-story, 85-bed
property totaling 33,000 square feet.
- New London Facility: 2020 McGee Road, Snellville, Ga. A single-story, 144-bed
property totaling 45,000 square feet.
- Parkway Facility: 200 South Parkway West, Memphis, Tenn. A single-story, 120-bed
property totaling 38,000 square feet.
- Riverside Facility: 5100 West St., Covington, Ga. A single-story, 158-bed
property totaling 43,000 square feet.
- Rockdale Facility: 1510 Renaissance Drive, Conyers, Ga. A single-story, 102-bed property
totaling 48,000 square feet.
- Sea Breeze Facility: 550 Congress St., Mobile, Ala. A three-story, 120-bed property
totaling 42,000 square feet.
- Shreveport Facility: 1736 Irving Place, Shreveport, La. A four-story, 227-bed property
totaling 66,000 square feet.
- Westminster Facility: 560 St. Charles Ave. NE, Atlanta. A two-story, 84-bed property totaling
20,000 square feet.
As of Sept. 23, 2011, Grubb &
Ellis Healthcare REIT II has sold approximately 38,381,440 shares
of its common stock, excluding the shares issued under its
distribution reinvestment plan, for approximately $382,988,000 through its initial public
offering.
To date, the REIT has made 24 geographically diverse
acquisitions comprised of 55 buildings valued at approximately
$430.8 million, based on purchase
price in the aggregate. As of Sept.
15, 2011, the company's property portfolio held debt
equaling approximately 26.8 percent of its value, based on purchase
price in the aggregate.
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), one of the largest and most respected
commercial real estate services and investment companies in the
world. Our 5,200 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 management business, the company is a leading sponsor of
real estate investment programs. For more information, visit
www.grubb-ellis.com.
This release contains certain forward-looking statements with
respect to the Southeastern Skilled Nursing Facility Portfolio's
occupancy and its master lease, whether the proposed acquisition of
Southeastern Skilled Nursing Facility Portfolio is an ideal
addition to our property portfolio, whether it will be
accretive to our bottom line and whether it would support our
investor distribution. Because such statements include risks,
uncertainties and contingencies, actual results may differ
materially from those expressed or implied by such forward-looking
statements. These risks, uncertainties and contingencies include,
but are not limited to, the following: our ability to complete the
acquisition of Southeastern Skilled Nursing Facility Portfolio
pursuant to the terms of the current agreement; the strength and
financial condition of Southeastern Skilled Nursing Facility
Portfolio and its tenant-operator; uncertainties relating to the
financial strength of Wellington Healthcare Services, L.P., and the
local economies of the various cities in Alabama, Georgia, Louisiana and Tennessee; uncertainties relating to changes
in general economic and real estate conditions; uncertainties
regarding changes in the healthcare industry; the uncertainties
relating to the implementation of our real estate investment
strategy; and other risk factors as outlined in the company's
prospectus, as amended from time to time, and as detailed from time
to time in our periodic reports, as filed with the U.S. Securities
and Exchange Commission. Forward-looking statements in this
document speak only as of the date on which such statements were
made, and we undertake no obligation to update any such statements
that may become untrue because of subsequent events.
THIS IS NEITHER AN OFFER TO SELL NOR AN OFFER TO BUY ANY
SECURITIES DESCRIBED HEREIN. OFFERINGS ARE MADE ONLY BY MEANS
OF A PROSPECTUS.
SOURCE Grubb & Ellis Healthcare REIT II, Inc.