SANTA ANA, CALIF. — Santa Ana-based Grubb & Ellis Healthcare REIT II has acquired the Dixie-Lobo Medical Office Building Portfolio from Seavest Inc. for an undisclosed amount. The portfolio comprises eight properties totaling 156,000 square feet.
The properties are located on the campuses of hospitals affiliated with Community Health Systems, Christus Spohn Health System and Signature Hospital Corporation. All of the properties are master-leased to the hospitals with terms expiring between November 2015 and August 2017. The leases all have four 5-year renewal options.
The eight properties include:
• A single-story, 9,000-square-foot building located on the campus of Medical Park Hospital at 302 Bill Clinton Drive in Hope, Ark.;
• A single-story, 15,000-square-foot building located on the campus of Women & Children's Hospital at 1920 W. Sale Road in Lake Charles, La.;
• A two-story, 24,000-square-foot building located on the campus of Carlsbad Medical Center at 2420 W. Pierre St. in Carlsbad, N.M.;
• A single-story, 15,000-square-foot building located on the campus of Lea Regional Medical Center at 5419 N. Lovington Highway in Hobbs, N.M.;
• Two single-story buildings totaling 25,000 square feet that are located on the campus of Christus Spohn Hospital Alice at 2420 and 2510 E. Main St. in Alice, Texas;
• A single-story, 15,000-square-foot building located on the campus of Woodland Heights Medical Center at 302 Medical Park Drive in Lufkin, Texas;
• A single-story, 33,000-square-foot building located on the campus of De Tar Hospital North at 110 Medical Drive in Victoria, Texas; and
• Two single-story buildings totaling 20,000 square feet that are located on the campus of Gulf Coast Medical Center at 2112 Regional Medical Drive in Wharton, Texas.
The purchase included the assumption of $23.24 million in existing debt. Grubb & Ellis Healthcare REIT II funded the deal with cash proceeds from its recent public offering.
“The Dixie-Lobo Medical Office Building Portfolio epitomizes what Grubb & Ellis Healthcare REIT II values in medical office acquisitions,” says President and COO Danny Prosky. “They are all located on thriving hospital campuses with long-term, stabilized tenancy, are immediately accretive to our bottom line and supportive of our investor distribution.”
— Coleman Wood