Grubb & Ellis Healthcare REIT (Real Estate Investment Trust) Inc., sponsored by the Grubb & Ellis Company, has acquired Medical Portfolio 3, a collection of 13 healthcare-related properties comprised of 20 buildings, which are located throughout Indianapolis.
Medical Portfolio 3 was acquired from HCP, Inc., a healthcare real estate investor headquartered in Long Beach, Calif.
Medical Portfolio 3 consists of approximately 689,000 square feet of gross leaseable area. The portfolio is 91 percent leased and is primarily anchored by Clarian Health Partners, which has occupancy in nine of the 13 properties for an approximate gross leaseable area of 325,000 square feet.
Clarian Health, one of the largest healthcare providers in Indiana, is a consolidated healthcare organization that formed in 1997 and includes Methodist Hospital, Indiana University Hospital and Riley Hospital for Children.
The nine properties leased to Clarian Health represent the company's "Beltway Strategy," an initiative to provide a network of medical facilities and services in locations off or near the Indianapolis beltway, Interstate 465, delivering healthcare to the communities near retail, residential and commercial areas in the eight-county region. Most of these medical properties are anchored by outpatient centers with ancillary programs such as ambulatory surgery centers, imaging centers and primary care practices.
"Clarian Health adds to the attractiveness of this acquisition because they are a high quality credit tenant that provides stability to the rent roll," said Danny Prosky, executive vice president of acquisitions for Grubb & Ellis Healthcare REIT. "This portfolio is not only located in a thriving metropolitan area, but enjoys strong occupancy as well, making this acquisition an outstanding one for the Grubb & Ellis Healthcare REIT portfolio."
Financing for the acquisition was primarily provided by Fifth Third Bank and through the Grubb & Ellis Healthcare REIT line of credit.
As of June 20, Grubb & Ellis Healthcare REIT has sold approximately 37.4 million
shares of its common stock, excluding the shares issued under its distribution reinvestment plan, for approximately $374 million through its initial public offering, which began in the third quarter of 2006.