CHARLOTTESVILLE, VA-Santa Ana, CA-based Grubb & Ellis Healthcare REIT II has expanded into the Mid-Atlantic with a $45-million acquisition of a skilled nursing portfolio located throughout Virginia. The non-traded REIT, which formed about a year ago and began making acquisitions this March, acquired the seven-building, 230,000-square-foot, 563-bed portfolio from a regional developer/investor, Danny Prosky, president and COO of Grubb & Ellis Healthcare REIT II, tells GlobeSt.com.
The portfolio was built between 1989 and 200 and is operated by Laurel Healthcare and Kissito Healthcare under long-term absolute net leases. “The properties are performing well and we like the tenant and operators,” Prosky says. “The pricing was attractive and we have long-term net leases accretive to dividends.”
The REIT began its acquisition spree in March and has since invested $138.4 million in 19 properties through 10 separate transactions in nine states, he says. These have been in medical office buildings, hospitals and skilled nursing. The REIT is also looking to make acquisitions in another healthcare asset type: assisted living. There is an aggressive pipeline, Prosky says, while declining to discuss specifics. The REIT has a target equity raise of $3 billion and its acquisitions will be a direct function of how much it eventually raises, Prosky tells GlobeSt.com.
The Virginia portfolio includes:
The Laurels of Charlottesville: a single-story skilled nursing facility constructed in 2004 that consists of 120 beds and 48,000 square feet on a 3.81-acre parcel. The property currently has a lease in place that runs through June 2016 with two additional five-year renewal options. The tenant has a one-time right to purchase the property in June 2015.
Bland Nursing and Rehabilitation Center: a two-story facility built in 1989 comprised of 57 beds and 31,000 square feet on a 4.52-acre parcel. The property currently has a lease in place that runs through January 2025 with two additional 10-year renewal options.
Maple Grove Health Care Center: a single-story building constructed in 1990 that consists of 60 beds and 23,000 square feet on a 4.12-acre parcel. The property currently has a lease in place that runs through January 2025 with two additional 10-year renewal options.
The Brian Center of Fincastle: a single-story skilled-nursing facility built in 1990 that consists of 60 beds and 27,000 square feet on a 5.55-acre parcel. The property currently has a lease in place that runs through January 2025 with two additional 10-year renewal options.
The Brian Center of Low Moor: a single-story assisted-living facility/skilled-nursing facility constructed in 1989 and comprised of 26 assisted living beds and 60 skilled nursing beds for a total of 86 beds. The facility consists of 43,000 square feet on a 3.01-acre parcel with a lease in place that runs through January 2025 with two additional 10-year renewal options.
The Laurels of Willow Creek: a single-story skilled-nursing facility built in 1991 that consists of 120 beds and 38,000 square feet on a 5.28-acre parcel. The property currently has a lease in place that runs through February 2025 with two additional five-year renewal options.
The Springs Nursing Facility: a single-story facility constructed in 1990 comprised of 60 beds and 20,000 square feet on a 4.67-acre parcel. The property currently has a lease in place that runs through January 2025 with two additional 10-year renewal options.
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