Grubb & Ellis Healthcare REIT II announces acquisition of Athens Long-Term Acute Care Hospital

Grubb & Ellis Healthcare REIT II, Inc. today announced that it has acquired Athens Long-Term Acute Care Hospital, a single-story, 32,000-square-foot, Class A single-tenant medical facility in Athens.  The acquisition closed on Oct. 29.  

Located at 775 Sunset Drive, Athens Long-Term Acute Care Hospital is approximately one mile from Athens Regional Medical Center, the region's leading healthcare provider and a significant source of referral patients.  Athens Long-Term Acute Care Hospital is the only long-term acute care hospital serving the more than one million residents of northeast Georgia.  

Built in 2008, Athens Long-Term Acute Care Hospital is leased by Landmark Real Estate Holdings, LLC, which signed a long-term lease through 2025.  The Athens facility is the third of a $42 million, four-property portfolio of regional long-term acute care hospitals being acquired by Grubb & Ellis Healthcare REIT II.  Similar facilities in Cape Girardeau and Joplin, Mo. were acquired by the REIT on Aug. 12 and Aug. 31, while a fourth facility in Columbia, Mo. is currently under contract.    

"Long-term acute care hospitals such as the four we are acquiring in Missouri and Georgia are attractive additions to the portfolio of Grubb & Ellis Healthcare REIT II," said Danny Prosky, president and chief operating officer of the REIT.  "They enjoy very limited competition, have strong relationships with major healthcare systems, and provide stable long-term income that is immediately accretive and supportive of our investor distributions."

Creative Health Capital, LLC represented the seller, White Oaks Real Estate Investments of Georgia, LLC, an unaffiliated third party, in the transaction.  Grubb & Ellis Healthcare REIT II financed the acquisition using $12.3 million in borrowings under its line of credit with Bank of America, N.A and cash proceeds received from its offering.