Thursday, October 6, 2011

Grubb & Ellis Healthcare REIT II Enters Agreement to Acquire $166.5-Million Skilled Nursing Facility Portfolio in Southeast




 SANTA ANA, CA– Grubb & Ellis Healthcare REIT II, Inc. 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 (top right photo), 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:

 1)      Bell Minor Facility (middle left photo): 2200 Old Hamilton Place NE, Gainesville, Ga. A single-story, 104-bed property totaling 43,000 square feet.

2)      Buckhead Facility: 2920 Pharr Court South, Atlanta. A five-story, 220-bed property totaling 82,000 square feet.

3)      Millington Facility: 5081 Easley St., Millington, Tenn. A single-story, 85-bed property totaling 33,000 square feet.

4)      New London Facility: 2020 McGee Road, Snellville, Ga. A single-story, 144-bed property totaling 45,000 square feet.

5)      Parkway Facility: 200 South Parkway West, Memphis, Tenn. A single-story, 120-bed property totaling 38,000 square feet.


6)      Riverside Facility: 5100 West St., Covington, Ga. A single-story, 158-bed property totaling 43,000 square feet.

7)      Rockdale Facility: 1510 Renaissance Drive, Conyers, Ga. A single-story, 102-bed property totaling 48,000 square feet.

8)      Sea Breeze Facility: 550 Congress St., Mobile, Ala. A three-story, 120-bed property totaling 42,000 square feet.

9)      Shreveport Facility: 1736 Irving Place, Shreveport, La. A four-story, 227-bed property totaling 66,000 square feet.

10)   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. 

Contact: Damon Elder, Phone: 714.975.2659

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