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Grubb & Ellis Healthcare REIT will maintain an 80% ownership interest inthe joint venture and act as managing member while Duke Realty holds theremaining 20% interest
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Chesterfield Rehabilitation Center is a 50-bed, newly constructed,three-story inpatient rehabilitation hospital in the St. Louis suburb ofChesterfield, Missouri. Built in June 2007 on more than seven acres, the112,000-square-foot hospital offers a full range of rehabilitative services inits Outpatient Physical Therapy and Brain and Spinal Cord Injury departments.The property offers ample parking with a two-story, 90,000-square-foot parkinggarage that can accommodate 286 vehicles.
Chesterfield Rehabilitation Center is located five miles from the secondlargest hospital in the metropolitan St. Louis area, St. John's MedicalCenter, a 979-bed full-service hospital sited on an 80-acre campus.Chesterfield Rehabilitation Center is a replacement facility for a recentlyclosed rehabilitation hospital on the medical center campus and is currentlymaster leased to St. John's Mercy Rehabilitation, LLC, a joint venture betweenSt. John's Mercy Health System and Centerre Healthcare.
St. John's Mercy Health System owns and operates St. John's Medical Centerand is a member of the Sisters of Mercy Health System, the ninth-largestCatholic healthcare system in the United States with 19 hospitals in sevenstates. Centerre is a national developer and operator of inpatientrehabilitation facilities in partnership with leading acute care hospitals.
"Demand for healthcare services in this country is growing rapidly, as isdemand for quality healthcare facilities," explained Danny Prosky, vicepresident of acquisitions for Grubb & Ellis Healthcare REIT. "The acquisitionof Chesterfield Rehabilitation Center further strengthens and diversifies theGrubb & Ellis Healthcare REIT, which has rapidly grown to become one of thefinest portfolios of healthcare facilities in the nation."
Duke Realty was represented by Philip B. Mahler and Jeffrey H. Cooper ofSavills Granite. Financing was provided by National City Bank and arranged byWilliam Bennett. Asset management services will be provided by Grubb & EllisCompany.
As of December 14, 2007, Grubb & Ellis Healthcare REIT has soldapproximately 20.4 million shares of its common stock, excluding the sharesissued under its distribution reinvestment plan, for more than $203 millionthrough its initial public offering, which began in the third quarter of 2006.
Grubb & Ellis Healthcare REIT offers a monthly distribution of 7.25percent per annum and has made 19 geographically-diverse acquisitions with atotal portfolio valued in excess of $392 million.
About Grubb & Ellis
Grubb & Ellis Company (NYSE: GBE), one of the largest and most respectedcommercial real estate services companies, is the sponsor of Grubb & EllisHealthcare REIT, Inc. With more than 130 owned and affiliate officesworldwide, Grubb & Ellis offers property owners, corporate occupants andinvestors comprehensive integrated real estate solutions, includingtransaction, management, consulting and investment advisory services supportedby proprietary market research and extensive local market expertise.
Grubb & Ellis and its subsidiaries are leading sponsors of real estateinvestment programs that offer individuals and institutions the opportunity toinvest in a broad range of real estate investment vehicles, includingtax-deferred 1031 tenant-in-common (TIC) exchanges, public non-traded realestate investment trusts (REITs) and real estate investment funds. As
