Grubb & Ellis Healthcare REIT II Acquires Long-Term Acute Care Hospital in Muskogee, OK

MUSKOGEE, Okla. (June 1, 2010) – Grubb & Ellis Healthcare REIT II, Inc. today announced that it has acquired Muskogee Long-Term Acute Care Hospital, (top left photo) a Class A, one-story long-term acute care hospital totaling approximately 37,000 square feet in Muskogee, Okla.

The $11 million acquisition closed on May 27.

Located at 351 South 40th St., Muskogee Long-Term Acute Care Hospital is in the midst of a thriving medical community: the 329-bed Muskogee Regional Medical Center (bottom right photo)  is within one-half mile, the 140-bed Jack C. Montgomery Veterans Affairs Medical Center (middle left photo) is within 1.25 miles, and Muskogee Community Hospital (middle right photo) , a newly built 45-bed community hospital, is within approximately five miles.

“We were particularly attracted to this property for two main reasons,” said Danny Prosky, president and chief operating officer of Grubb & Ellis Healthcare REIT II.

“First, it is in very close proximity to three significant medical centers which serve as a steady source of patients in need of long-term care.

"Secondly, it is leased to a credit tenant under a long-term triple net lease, providing the REIT with predictable and steady income that is immediately accretive and supportive of our stockholder distribution.”

The 41-bed Muskogee Long-Term Acute Care Hospital, which has an option to expand by ten beds, is an extended-stay specialty hospital for chronically ill and rehabilitation patients whose average length of stay is 25 days or more.

 Long-term acute care hospital patients are typically transferred from the intensive care units of traditional hospitals and require long stays for such diagnoses as pulmonary and/or tracheotomy care, ventilator weaning, critical care issues, infectious diseases, medically complex and extensive wound management.

The next closest long-term acute care hospital is approximately 40 miles away in neighboring Tulsa.

Built in 2006 on approximately 3.7 acres of land, the property is 100 percent occupied by Solara Hospital Muskogee, LLC under a triple net lease that runs through Nov. 29, 2021. The lease is guaranteed by Solara Healthcare, LLC, a privately owned operator of seven long-term acute care and other healthcare related facilities.

Muskogee Long-Term Acute Care Hospital was acquired from Muskogee LTACH, LLC, an unaffiliated third party represented by Philip Camp and Jay Miele of Shattuck Hammond Partners. Grubb & Ellis Healthcare REIT II financed the acquisition using cash proceeds received from its offering.

Contact:  Damon Elder, Senior Director, Communications, Grubb & Ellis Equity Advisors, LLC

1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705; 714.667.8252 ext. 52659
714.975.2659 direct; 714.356.1460 cell; http://equityadvisors.grubb-ellis.com/