Thank you for sharing!

Your article was successfully shared with the contacts you provided.

[IMGCAP(1)]SANTA ANA, CA-Grubb & Ellis Healthcare REIT has acquired a five-property medical office portfolio totaling 224,000 sf, and another Orange County-based nontraded REIT—Ladera Ranch, CA-based Strategic Storage Trust Inc.—has acquired 146,000 sf of self-storage space in closing its first deal.

Grubb & Ellis Healthcare REIT bought its five-property portfolio, called Medical Portfolio 4, from affiliated entities of the Dallas-based Cirrus Group LLC. The acquisition includes medical office buildings in Arizona, Ohio and Texas.

In the case of Strategic Storage Trust, the REIT bought two self-storage facilities in Mississippi and Florida for a combined value of $10.76 million from U-Stor-It LP, paying approximately two-thirds of the total in cash. Strategic Storage, launched earlier this year, is a $1 billion nontraded REIT targeting properties in the self-storage industry.

The Medical Portfolio 4 that Grubb & Ellis Healthcare REIT acquired is “a geographically diverse group of healthcare facilities that strengthen the Grubb & Ellis Healthcare REIT portfolio,” according to Danny Prosky, executive vice president of acquisitions for the REIT. Prosky notes that each property of Medical Portfolio 4 is on a medical campus or close to one, which “adds to the attractiveness of each of these properties and the value they present to our REIT.”

The five properties are: A five-story, 78,000-sf medical office building at 6036 N. 19th Ave. in Phoenix; a three-story, 30,000-sf building at 6789 Ridge Rd. in Parma, OH; a two-story, 48,000-sf building at 1305 W. Jefferson St. in Waxahachie, TX; a single-story, 25,000-sf building at 950 E. Belt Line Rd. in the Dallas suburb of Cedar Hill; and a two-story, 43,000-sf building at 4501 Joe Ramsey Blvd. in Greenville, TX.

The Cirrus Group was represented by James Moloney and Joe Dominguez of Cain Brothers RE, LLC. Financing for the acquisition was primarily provided by Bank of America, as well as debt assumption for 6036 N. 19th Ave.

[IMGCAP(2)]Strategic Storage Trust, with the closing of its transaction, brings more than 1,300 storage units into its portfolio. The REIT’s business plan aims to capitalize on creating greater efficiency in a self-storage sector that is comparatively stable but also fragmented among many smaller owner-operators.

H. Michael Schwartz, SSTI’s chairman and CEO, comments that theacquisition of the two properties in Biloxi, MS and Gulf Breeze, FL was “structured for success” despite the credit crunch. “We put a lot of cash down,” Schwartz says. “Given the economic uncertainty, we feel that it’s prudent to reduce our reliance on debt.”

Schwartz says that SSTI expects to uncover “significant buying opportunities in self-storage real estate” in today’s market, which he says offers “better values than we’ve seen in the last five to seven years.” SST is sponsored by US Commercial LLC, which manages a portfolio of 4.8 million sf of commercial properties, including 2.8 million sf of self storage facilities, with a combined market value of more than $563 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.