CAPE GIRARDEAU, MO-White Oaks Real Estate Investments LLC has sold the first of four medical office properties to Grubb & Ellis Healthcare REIT II Inc. The REIT paid $8 million for the Cape Girardeau Long-Term Acute Care Hospital here, as part of the planned $42 million acquisition of White Oak’s portfolio of Landmark Holdings hospitals, also known as the Monument Ltach Portfolio.

The site here is a single-story, 26,000-square-foot medical office property leased by Landmark Holdings of Missouri LLC. The company has a lease through 2025 on the building. The site is about a mile away from the 258-bed St. Francis Medical Center, where a 208,000-square-foot Heart Hospital and Cancer Institute addition is now under construction.

The REIT has agreed to buy the portfolio in stages, with this site purchased first. The other buildings are Landmark Hospital in Joplin, MO; Landmark Hospital in Columbia, MO and Landmark Hospital in Athens, GA. According to an SEC filing, the REIT will close on the Joplin property on Aug. 31, the Athens site on Oct. 29 and the Columbia property on Nov. 15, assuming due diligence is acceptable.

“We intend to finance the purchase of the three remaining properties in the Monument Ltach Portfolio using a combination of funds raised through our initial public offering and borrowings under our line of credit with Bank of America,” said the REIT in the filing. Creative Health Capital LLC is representing White Oaks in these transactions.

Danny Prosky, president and COO of the REIT, tells GlobeSt.com that medical offices and related properties, such as senior housing, are seeing competition from various buyers. “Senior housing is still struggling, however, as financing remains difficult,” he says. The REIT is raising about $3 billion in equity and real estate assets, focusing primarily on medical office buildings and other health care-related facilities.

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