SANTA ANA, CA-Grubb & Ellis Healthcare REIT II has acquired three properties in Arizona, Texas and Florida for $32 million in three separate transactions. They include the 143-bed Yuma Skilled Nursing Facility in Yuma, AZ; the 42,000-square-foot Hardy Oak Medical Building in San Antonio and the 58,000-square-foot Lakewood Ranch Medical Office Building in Bradenton, FL.

The REIT paid $11 million for the Yuma property, which it bought from AFS Realty of Yuma. It financed the purchase under a revolving line of credit with Bank of America and cash proceeds from its offering. The facility that was built in 1964 and is undergoing a $3.5 million renovation that is being paid for by Kissito Healthcare, the operator of the facility, which has agreed to a new lease that will run through April 30, 2026 with two additional 10-year renewal options. AFS Realty was represented by Daniel Brown of Creative Health Capital LLC.

The REIT bought the San Antonio property, called Hardy Oak Medical Office Building, from 18626 Hardy Oak Ltd. for $8.07 million. It financed a portion of the purchase price through the assumption of a loan that the Hardy Oak seller had received from Insurance Company of the Southwest, which has an outstanding principal balance of approximately $5.25 million; it financed the remaining balance of the purchase price using cash proceeds from its offering. Seller 18626 Hardy Oak Ltd. was represented by Mark Krenger of Travis Commercial Real Estate Services and Clint Parker of Grubb & Ellis Co.

The REIT paid $12.5 million for the Bradenton property, called Lakewood Ranch Medical Office Building and subject to an existing ground leasehold interest, which it bought from Lakewood Ranch MOB LLP. It financed the purchase of the Lakewood Ranch property using $13.8 million in borrowings under its line of credit and paid a loan defeasance fee of approximately $1.223 million. The defeasance fee was related to the repayment of a loan that the Lakewood Ranch seller had received from Lincoln Financial Group or its affiliates. The seller was represented by Steve Horn of Ian Black Real Estate and Greg Endsley of Madison Street Partners.

Danny Prosky, president and chief operating officer of Grubb & Ellis Healthcare REIT II, noted in an announcement regarding the transactions: "As a result of the Yuma acquisition, we were able to extend through 2026 the leases of five other skilled nursing facilities owned by the REIT that are operated by Kissito Healthcare."