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MILWAUKEE-Grubb & Ellis Healthcare REIT Inc. has reportedly purchased a four-building medical office portfolio in Wisconsin for $34 million from Aurora Healthcare. While a spokesperson for Grubb & Ellis Healthcare declined to confirm the financial details of the sale/leaseback deal a source familiar with the deal confirmed the seller and purchase price to GlobeSt.com.

The buildings are located in Menomonee Falls, Milwaukee, Richfield and Mequon, a spokesperson tells GlobeSt.com, and total 185,000 square feet. Each of the buildings is fully leased “to a high credit tenant,” which was one of the attractive features in the deal. Additionally, the total portfolio is under “an absolute net lease, for a term of 15 years.”

The lease rates of the term were not released, but the spokesperson did say that the terms were in line with the market average in the respective cities.

The spokesperson tells GlobeSt.com that the company has no plans to redevelop or renovate any of the properties as the tenant is under a bond net lease making them responsible for the upkeep of each facility.

“This is a sale/leaseback transaction with one of the leading providers of healthcare services in Wisconsin,” says Scott Peters, CEO and president, Grubb & Ellis Healthcare, in a statement. “These types of transactions with attractive credit tenants are of great value to Grubb & Ellis Healthcare REIT and further strengthen our expansive portfolio.”

Grubb & Ellis Healthcare has a portfolio of 133 buildings across the country, through 43 acquisitions totaling roughly $1 billion. The 5.3 million square feet of space is split between 12 skilled nursing facilities and 114 medical office properties throughout 18 states.

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