The Indiana REIT is paying locally based Diagnostic Ventures LLC $6.4 million for the 41,000-sf East West Medical Center in suburban Austell, GA.; $7.4 million for the 41,000-sf Gwinnett Center for Specialty Medicine I in suburban Lawrenceville, GA.; and $3.4 million for the 18,500-sf Gwinnett Center for Specialty Medicine II, also in Lawrenceville.
In the East West Medical Center deal, Windrose assumed $4.7 million of debt with the balance of the purchase price in cash. Gwinnett Center for Specialty Medicine I was funded by $5.1 million in assumed debt and the remainder in cash. Diagnostic Ventures principals are Bert Hunecke, JC Long II and Emily Brem Gossett.
The third property, Gwinnett Center for Specialty Medicine II, is awaiting final lender approval on the assumed debt, says Windrose president and chief operating officer Fred L. Farrar. "These specialty medical properties provide high-quality healthcare services to the Atlanta metropolitan community and are 100% leased," Farrar says. Lease expirations range from 2014 to 2016, except for two leases that expire in 2008.
"These acquisitions were in line with our first-year cash cap rate target range and are expected to provide a stable and growing revenue stream," he says. "We are positioned to continue to acquire medical related real estate in attractive growth markets."
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