Grubb & Ellis Healthcare REIT bought its five-propertyportfolio, called Medical Portfolio 4, from affiliated entities ofthe Dallas-based Cirrus Group LLC. The acquisition includes medicaloffice buildings in Arizona, Ohio and Texas.

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In the case of Strategic Storage Trust, the REIT bought twoself-storage facilities in Mississippi and Florida for a combinedvalue of $10.76 million from U-Stor-It LP, paying approximatelytwo-thirds of the total in cash. Strategic Storage, launchedearlier this year, is a $1 billion nontraded REIT targetingproperties in the self-storage industry.

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The Medical Portfolio 4 that Grubb & Ellis Healthcare REITacquired is "a geographically diverse group of healthcarefacilities that strengthen the Grubb & Ellis Healthcare REITportfolio," according to Danny Prosky, executive vice president ofacquisitions for the REIT. Prosky notes that each property ofMedical Portfolio 4 is on a medical campus or close to one, which"adds to the attractiveness of each of these properties and thevalue they present to our REIT."

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The five properties are: A five-story, 78,000-sf medical officebuilding at 6036 N. 19th Ave. in Phoenix; a three-story, 30,000-sfbuilding at 6789 Ridge Rd. in Parma, OH; a two-story, 48,000-sfbuilding at 1305 W. Jefferson St. in Waxahachie, TX; asingle-story, 25,000-sf building at 950 E. Belt Line Rd. in theDallas suburb of Cedar Hill; and a two-story, 43,000-sf building at4501 Joe Ramsey Blvd. in Greenville, TX.

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The Cirrus Group was represented by James Moloney and JoeDominguez of Cain Brothers RE, LLC. Financing for the acquisitionwas primarily provided by Bank of America, as well as debtassumption for 6036 N. 19th Ave.

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[IMGCAP(2)]Strategic Storage Trust, with the closing of itstransaction, brings more than 1,300 storage units into itsportfolio. The REIT's business plan aims to capitalize on creatinggreater efficiency in a self-storage sector that is comparativelystable but also fragmented among many smaller owner-operators.

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H. Michael Schwartz, SSTI's chairman and CEO, comments thattheacquisition of the two properties in Biloxi, MS and Gulf Breeze,FL was "structured for success" despite the credit crunch. "We puta lot of cash down," Schwartz says. "Given the economicuncertainty, we feel that it's prudent to reduce our reliance ondebt."

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Schwartz says that SSTI expects to uncover "significant buyingopportunities in self-storage real estate" in today's market, whichhe says offers "better values than we've seen in the last five toseven years." SST is sponsored by US Commercial LLC, which managesa portfolio of 4.8 million sf of commercial properties, including2.8 million sf of self storage facilities, with a combined marketvalue of more than $563 million.

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