SANTA ANA, Calif., Jan. 9 Grubb & EllisHealthcare REIT, Inc. today announced the acquisition of Mountain PlainsPortfolio, a two-property medical office building portfolio in San Antonio andthe Houston suburb of Webster for $43 million. The acquisition closed inDecember 2008.
Located at 4243 E. Southcross Blvd. in San Antonio, Pecan Valley MedicalOffice Building consists of approximately 60,000 square feet of grossleaseable area. The two-story building is situated on approximately 3.1 acresof land and includes surgery rooms, an indoor rehabilitation pool and animaging center. The medical office building is across the street fromSoutheast Baptist Hospital, a member of Baptist Health System, a privatenetwork of hospitals including four additional locations in San Antoniototaling approximately 1,537 beds. Built in 1998, Pecan Valley Medical OfficeBuilding is in close proximity to State Route 13 and is currently 100 percentoccupied.
Built in 2006, Clear Lake Medical Office Building is located at 250Blossom St. in Webster. Situated on approximately 4.7 acres of land, thefour-story building consists of approximately 110,000 square feet of grossleaseable area and is currently 100 percent occupied. The property is acrossthe street from Clear Lake Regional Medical Center, a 595-bed tertiaryregional referral center offering comprehensive inpatient and outpatientmedical, surgical and specialty services. Additionally, Clear Lake MedicalOffice Building is adjacent Triumph Hospital Clear Lake, a long-term acutecare center with 100 private rooms and 14 intensive care unit rooms.
"With the addition of these two assets, Grubb & Ellis Healthcare REITcompleted 21 healthcare acquisitions in 15 states in 2008," said Scott Peters,president and chief executive officer, Grubb & Ellis Healthcare REIT. "Wecontinue to grow and build our portfolio for long-term value."
Pecan Valley Medical Office Building and Clear Lake Medical OfficeBuilding were acquired from unaffiliated third parties. All sellers wererepresented by P.J. Camp and Jay Miele of Shattuck Hammond Partners.
About Grubb & Ellis Healthcare REIT
Grubb & Ellis Healthcare REIT, Inc. is a publicly registered, non-tradedreal estate investment trust which offers a monthly distribution of 7.25percent per annum.
As of December 19, 2008, Grubb & Ellis Healthcare REIT has soldapproximately 72 million shares of its common stock, excluding the sharesissued under its distribution reinvestment plan, for approximately $720million through its initial public offering, which began in the third quarterof 2006. The REIT is conducting a best efforts offering of up to 200,000,000shares of its common stock.
Grubb & Ellis Healthcare REIT has made 42 geographically diverse propertyacquisitions and other real estate-related investments valued at approximately$966.4 million based on purchase price, which includes 129 buildings, as ofDecember 31, 2008. The REIT's property portfolio totals 5.1 million squarefeet, and includes 110 medical office buildings, four hospitals, 12 skillednursing and assisted living facilities and three other office buildingslocated in 17 states, including: Arizona, California, Colorado, Florida,Georgia, Indiana, Kansas, Minnesota, Missouri, New Hampshire, Ohio, Oklahoma,Pennsylvania, Tennessee, Texas, Utah and Virginia.
About Grubb & Ellis Company
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 provide individuals and institutions the opportunityto invest 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 ofSeptember 30, 2008, more than $3.8 billion in investor equity has been raisedfor these investment programs. The company and its subsidiaries currentlymanage a growing portfolio of more than 225 million square feet of realestate. In 2007, Grubb & Ellis was selected from among 15,000 vendors asMicrosoft Corporation's Vendor of the Year. For more information regardingGrubb & Ellis Company, please visit http://www.grubb-ellis.com.
This press release contains certain forward-looking statements withrespect to the growth and value of Grubb & Ellis Healthcare REIT's portfolioand the value that Mountain Plains Portfolio adds to the REIT.Forward-looking statements are statements that are not descriptions ofhistorical facts and include statements regarding management's intentions,beliefs, expectations, plans or predictions of the future, within the meaningof Section 27A of the Securities Act of 1933, as amended, and Section 21E ofthe Securities Exchange Act of 1934, as amended. Because such statementsinclude risks, uncertainties and contingencies, actual results may differmaterially from those expressed or implied by such forward-looking statements.These risks, uncertainties and contingencies include, but are not limited to,the following: the strength and financial condition of each individualproperty; the strength of any medical campus in proximity to each property;uncertainties relating to the local economies of San Antonio and Webster,Texas; uncertainties relating to changes in general economic and real estateconditions; uncertainties regarding changes in the healthcare industry; theuncertainties relating to the implementation of our real estate investmentstrategy; and other risk factors as outlined in the company's prospectus, asamended from time to time, and as detailed from time to time in our periodicreports, as filed with the Securities and Exchange Commission.
SOURCE Grubb & Ellis Healthcare REIT, Inc.