PALM BEACH, FL—The demand for medical office buildings in the Southeast remains strong. Griffin-American Healthcare REIT II—formerly known as Grubb & Ellis Healthcare REIT II—just snapped up a trio of medical office buildings across three Southeastern states for $25.1 million.

The three medical office buildings total about 117,000 square feet collectively and all post high occupancy. Each medical office building is located on a hospital campus or is affiliated with a nearby medical center that serves as its major tenant. With the new additions—which span Boynton Beach, FL, Austell, GA and Okatie, SC—the healthcare REIT beefs up the size of its medical office building portfolio to a healthy 69 buildings valued at about $630 million.

“We believe the aging of America is driving demand for healthcare services constantly higher throughout the country,” Danny Prosky, president and COO of Griffin-American Healthcare REIT II, tells GlobeSt.com. “Griffin-American Healthcare REIT II is designed to take advantage of this demographic wave through the acquisition of clinical healthcare facilities that produce immediate income for our investors.”

Prosky says the three new deals meet those criteria and build upon the healthcare REIT's institutional-quality nationwide portfolio. The assets include Boynton East Medical Office Building, East West Medical Office Building, and the Okatie Medical Office Building.

Boynton East Medical Office Building is a two-story, 28,000-square-foot facility built in 2003 on the campus of the 400-bed Bethesda Memorial Hospital in Boynton Beach. The property is 95% leased. East West Medical Office Building is a single-story, 41,000-square-foot facility built in 1999. The property is 100% leased. And Okatie Medical Office Building is a three-story, 47,000-square-foot facility built in 1997. The property is approximately 86% leased.

Griffin-American Healthcare REIT II financed most of the acquisition through the assumption of $11.9 million of existing debt and $12 million in borrowings under its line of credit with Bank of America. Cash proceeds received from its offering also helped fund the deal.