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CYPRESS, CA-Grubb & Ellis Healthcare REIT of Santa Ana has closed on its latest acquisition, the $26 million purchase of a five-story, class A office building that is leased to United HealthCare Services. The buyer acquired the 104,000-sf building, which is at 5995 Plaza Dr., from an institutional owner.

Completed in 1986, 5995 Plaza Dr. is situated on nearly five acres of land and features a dual-entrance parking lot containing 445 spaces for visitors and tenants. The tenant, United HealthCare Services Inc., is a provider of network-based health and well-being services for mid-sized and small employers, as well as individuals and families. United, which occupies 100% of the building, recently renewed its lease for five years, with an option to extend for another five years.

The sale was brokered by a CB Richard Ellis team of Bob Smith, Mike Kane, Karen Scholte and Paul Jones of the company’s Newport Beach office, who represented the seller, along with Kevin Shannon of CBRE’s South Bay office. Smith comments that the sale “demonstrates that properties with a predictable cash flow, and therefore less risk, are continuing to experience activity as buyers recognize the long term upside to investing in Orange County’s office market.”

Danny Prosky, executive vice president of acquisitions for Grubb & Ellis Healthcare REIT, notes that the 5995 Plaza Dr. building is located close to interstates 405 and 605 and Highway 22. It is also accessible from two major thoroughfares in the area, Katella Avenue and Valley View Street, and is surrounded by a host of retail outlets and hotels. Grubb & Ellis Healthcare REIT financed the acquisition through its line of credit and from funds raised through its initial public offering.

As of May 16, the nontraded REIT had sold approximately 32.8 million shares of its common stock for approximately $328 million through its initial public offering, which began in the third quarter of 2006.

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