Grubb & Ellis Healthcare announces acquisition of Columbia Long-Term Acute Care Hospital

Grubb & Ellis Healthcare REIT II, Inc. today announced that it has acquired Columbia Long-Term Acute Care Hospital, a single-story, 31,000-square-foot, Class A single-tenant medical facility in Columbia, midway between Kansas City and St. Louis.  The acquisition closed on Jan. 31.  

Located at 604 North Old Highway, Columbia Long-Term Acute Care Hospital is less than one mile from Boone Hospital Center, a 394-bed full service medical facility, and approximately three miles from University of Missouri Women's and Children's Hospital, a 189-bed general acute care medical center.  Both facilities serve as significant sources of referral patients to Columbia Long-Term Acute Care Hospital.  

Built in 2009, Columbia Long-Term Acute Care Hospital is leased by Landmark Holdings of Missouri, LLC, which signed a long-term lease through January 2026.  The Columbia facility is the fourth and final piece of a $42 million, four-property portfolio of regional long-term acute care hospitals acquired by Grubb & Ellis Healthcare REIT II.  Similar facilities in Cape Girardeau and Joplin, as well as one in Athens, Ga., were acquired by the REIT in 2010.    

"Long-term acute care hospitals such as the four we've acquired in Missouri and Georgia are exceptional additions to Grubb & Ellis Healthcare REIT II," said Danny Prosky, president and chief operating officer of the REIT.  "They each 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, LLC, an unaffiliated third party, in the transaction.  Grubb & Ellis Healthcare REIT II financed the acquisition using cash proceeds received from its offering and $11 million in borrowings under its line of credit with Bank of America, N.A.  

As of Jan. 21, 2011, Grubb & Ellis Healthcare REIT II has sold approximately 16,289,692 shares of its common stock, excluding the shares issued under it distribution reinvestment plan, for approximately $162,515,000 through its initial public offering, which began at the end of the third quarter of 2009.

To date, the REIT has made 14 geographically diverse acquisitions comprised of 26 buildings valued at approximately $206 million, based on purchase price.