SANTA ANA, CA-Grubb & Ellis Healthcare REIT II has acquired an eight-property portfolio of 10 medical office buildings totaling 156,220 square feet in Arkansas, Louisiana, New Mexico and Texas from White Plains, NY-based Seavest for $30 million. The master-leased, on-campus MOBs, known as the Dixie-Lobo Medical Office Building Portfolio, had been part of the Seavest Properties I LLC investment fund since they were developed by the company in 2000-2002.

Danny Prosky, president and COO of Grubb & Ellis Healthcare REIT II, said that the portfolio "epitomizes what Grubb & Ellis Healthcare REIT II values in medical office acquisitions.” Prosky said that the properties "are all located on thriving hospital campuses with long-term stabilized tenancy, are immediately accretive to our bottom line and supportive of our investor distribution.”

The facilities range from 10,000 square feet to 33,000 square feet with an average size of 16,000 square feet. All 10 of the buildings are located on the campus of local hospitals that are their sole tenant, six of which are affiliated with Community Health Systems, one of the nation’s largest operators of general acute care hospitals in non-urban and mid-size markets. The remaining four buildings are located on the campuses of, and leased to, hospitals affiliated with Christus Spohn Health System and Signature Hospital Corp. The facilities are master leased to the hospitals with expirations staggered between November 2015 and August 2017. Each of the hospital-tenants have four five-year renewal options.

The eight properties are in Alice, Lufkin, Victoria and Wharton, TX; Carlsbad and Hobbs, NM; Hope, AK and Lake Charles, LA. The Lake Charles site also includes land for possible future development.

All of the MOBs were developed by Seavest and its construction partner on a programmatic basis for Triad Hospitals Inc. The developments were part of Triad’s larger plan to expand hospital services and physician recruitment on many of its campuses. Seavest’s construction partner for the MOBs was the former Mediplex Medical Building Corp.

Sale of assets in the South and Southwest to Grubb & Ellis Healthcare REIT II reflects firm’s strategy to unlock value after achieving its long-term investment objectives, according to Seavest president Douglas Ray. Grubb & Ellis Healthcare REIT II financed the acquisition with a $23.23 million loan assumption and cash proceeds received from its offering.