HEALTHCARE REIT BUYS 10 MOBs IN ONE DEAL, PLUS MORE IN GEORGIA AND TEXAS
By John Mugford
Perhaps Grubb & Ellis Health-care REIT Inc. can help revive the slumping medical office building (MOB) acquisition market.
At a time when MOB acquisition news is sparse, the privately operated Santa Ana, Calif.-based healthcare real estate investment trust (REIT) closed on two purchases in recent weeks. We also learned that the company acquired a large portfolio in Tennessee and Virginia in September that went unreported until just recently.
Officials say they did not announce the REIT’s Sept. 12 acquisition of what they are calling the Mountain Empire Portfolio because the purchase of one of the MOBs in an 11-building portfolio was delayed and eventually fell through.
As a result, Grubb & Ellis acquired 10 buildings in the portfolio for a total of $25.5 million. According to the company’s U.S. Securities and Exchange Commission (SEC) filings, the REIT paid for the portfolio with a loan of about $17.3 million and about $12 million from its line of credit.
The properties are in the Tennessee cities of Bristol and Kingsport, and in Norton, Va. Further details were not available at press time.
However, in December, the REIT closed on the acquisition of Marietta Health Park, a four-story, 81,000 square foot MOB in the Atlanta suburb of Marietta. According to reports, the REIT paid $15.3 million, or $188.8 per square foot (PSF).
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