Jersey City Medical Office Building

SANTA ANA, CA-Grubb & Ellis Healthcare REIT II has acquired four properties comprising five medical office buildings, four of them in Arkansas and one in New Jersey, for $44 million. Totaling approximately 179,000 square feet, the medical office buildings are all located on the campus of, or fully leased to, a leading regional medical center.

The deal is the first part of a two-phase acquisition of a portfolio of eight medical office buildings, according to Danny Prosky, president and COO of Grubb & Ellis Healthcare REIT II. After the second phase is completed, the REIT’s portfolio of clinical medical buildings will have expanded to include regional portfolios in Greater New York and central Arkansas, and the REIT will have acquired its first property in the state of Washington, Prosky said.

The Santa Ana-based company acquired the properties from affiliates of Landmark Healthcare Properties Fund, according to public filings by the REIT. The seller was represented by Jeffrey Cooper and Philip Mahler of Savills. Grubb & Ellis Healthcare REIT II financed the acquisition using cash proceeds from its offering, $31.1 million in borrowings under its line of credit with Bank of America and $5 million in borrowings from Keybank.

The individual properties are the 68,000-square-foot Jersey City Medical Office Building in Jersey City, NJ; the 79,000-square-foot Medical Park Place I & II medical office complex in Benton, AR; the 10,000-square-foot Home Health Medical Complex in Benton; and the 22,000-square-foot Bryant Medical Office Building in Bryant, AR.