Grubb & Ellis Healthcare REIT II has bought Joplin Long-Term Acute Care Hospital, a single-story, 26,000 sq. ft. Class-A medical facility in Joplin, Mo. Grubb & Ellis, based in Santa Ana, Calif., is one of the nation’s largest brokerage and investment companies.
The hospital is located in the four-state area where Missouri, Oklahoma, Arkansas and Kansas converge, and is the only non-governmental facility of its kind in the vicinity. Built in 2007, the hospital is leased through 2025 by Landmark Holdings of Missouri LLC.
The purchase is the second of a $42 million, four-property portfolio of regional long-term acute care hospitals that Grubb & Ellis Healthcare REIT II is purchasing. The REIT bought a facility in Cape Girardeau, Mo. earlier, on Aug.12. Additionally, it has contracted to buy two more facilities, one in Columbia, Mo. and another in Athens, Ga.
“Long-term acute care hospitals such as the four we are acquiring in Missouri and Georgia are attractive additions to the portfolio of Grubb & Ellis Healthcare REIT II,” says Danny Prosky, president and chief operating officer of the REIT. “They enjoy very limited competition, have strong relationships with major healthcare systems, and provide stable long-term income.”
Creative Health Capital LLC represented the seller, White Oaks Real Estate Investments LLC, in the transaction. Grubb & Ellis Healthcare REIT II financed the acquisition with cash proceeds from its offering and $8 million borrowed under its line of credit with Bank of America.
Grubb & Ellis Healthcare REIT II aims to raise as much as $3 billion in equity. Its strategy is to buy a diversified portfolio of real estate assets, focusing primarily on medical office buildings and other healthcare-related facilities.
Grubb & Ellis investment programs include publicly registered non-traded REITs, mutual funds, and other real estate investment funds.