Marcus & Millichap Lists 3 Medical Office Buildings in Florida, Georgia and South Carolina
Griffin-American Healthcare REIT II (formerly Grubb & Ellis Healthcare REIT II) has closed on three medical office buildings in the Southeastern U.S. for a total of $25.1 million, or about $215 per square foot.
The three properties total 116,802 square feet, and all enjoy high occupancy and are either located on or in close proximity to a regional medical center.
- Boynton East Medical Pavilion totals 28,286 square feet at 2800 S. Seacrest Blvd. in Boynton Beach, FL. It was built in 2003 on two acres in the Delray Beach submarket of Palm Beach County. It is 95% leased to eight tenants including Bethesda Memorial Hospital.
- East-West Medical Center totals 41,402 square feet at 2041 Mesa Valley Way in Austell, GA. It was built in 1999 on five acres in the Kennesaw/Town Center submarket of Cobb County. It is 100% leased to two tenants including Ortholink Physicians Corporation.
- Okatie Outpatient Center totals 47,114 square feet at 40 Okatie Center Blvd. S in Okatie, SC. It was built in 1998 on nine acres in Beaufort County. It is 91% leased to three tenants including Hilton Head Regional Healthcare System.
"We believe the aging of America is driving demand for healthcare services constantly higher throughout the country," said Danny Prosky. "Griffin-American Healthcare REIT II is designed to take advantage of this demographic wave through the acquisition of clinical healthcare facilities that produce immediate income for our investors. These latest additions to our portfolio meet these criteria and build upon our institutional-quality nationwide portfolio."
Griffin-American financed the acquisition with net cash proceeds from its initial offering totaling nearly 50 million shares, $12 million from a line of credit with Bank of America, and the assumption of $11.9 million in existing debt.
As of Jan. 30, 2012, the real estate investment trust's portfolio totals 70 buildings valued at approximately $630 million based on purchase price, according to the company.
For more information on this transaction, please see CoStar COMPS #2253754.