Windrose Completes Five-Property Acquisition

The New Jersey property is Cooper Voorhess Medical Mall. The multi-tenant medical and retail office building is currently 91% occupied. The two-story medical mall portion of the property totals 73,051 sf and is 100% occupied by Cooper Health Systems. As part of the acquisition price, Windrose assumed $23.1 million of debt. The cash portion of the transaction was funded with proceeds from the secondary offering.

The Texas property is Trinity West Medical Plaza, a multi-tenant medical office building in Lewisville, TX. The three-story property is master leased to Trinity Medical Center, which currently subleases approximately 85% of the property to various physicians and other medical providers. Using proceeds from the offering, Windrose paid cash for the property.

The Reno property is located on the campus of Saint Mary's Regional Medical Center. The four-story office building is 100% leased--40.0% by Saint Mary's Hospital and 24.8% by Reno Heart Physicians. As part of the acquisition price, Windrose has assumed $9.8 million of debt at a fixed interest rate of 6.7%. The Sacramento property is 97% leased -- 56% by the Methodist Medical Building adds 46,440 square feet of rental space to the Windrose portfolio and is 97.9% leased. Tenants include Methodist Hospital of Sacramento, CHW Medical Foundation and Volunteer League of Methodist Hospital of Sacramento, which are affiliates of Catholic Healthcare West (CHW), the owner of Methodist Hospital of Sacramento. As part of the acquisition price, Windrose assumed $5.4 million of debt at a fixed interest rate of 7.1%.

With regard to Cooper Voorhees Medical Mall and Trinity West Medical Plaza, documents filed with the SEC say the sellers will be able to repurchase the properties in 2006 for the price at which they were sold if the sellers offer Windrose other of its specialty medical properties for an aggregate purchase price of between $100 million and $110 million and Windrose fails to close on those properties.