Grubb & Ellis Healthcare REIT II Acquires Sylva Medical Office Building in North Carolina

SYLVA, N.C. /PRNewswire/ -- Grubb & Ellis Healthcare REIT II, Inc. today announced that it has acquired Sylva Medical Office Building, a three-story, 45,000-square-foot, Class A single-tenant medical office building on the campus of Harris Regional Hospital in Sylva.  The acquisition closed on Nov. 15.   

Located at 98 Doctors Drive, Sylva Medical Office Building is on the campus of the 86-bed Harris Regional Hospital, an acute care facility that serves the residents of Jackson County and neighboring communities in western North Carolina.

 Carolinas HealthCare System, one of the leading healthcare organizations in the Southeast, manages the hospital on behalf of its owner, WestCare Health System. 

"Grubb & Ellis Healthcare REIT II is committed to building a diverse portfolio of income-producing healthcare-related properties that are accretive and supportive of our investor distribution," said Danny Prosky (middle right photo), president and chief operating officer. 

"This strategy allows us to provide our stockholders with dependable income and superior long-term financial performance."

Built in 2010, the property is leased to Harris Regional Hospital (middle left photo), which signed a long-term lease through 2025.   

Sylva Medical Office Building was acquired from CDP-Sylva LLC, an unaffiliated third party represented by Doug Connell, senior vice president, Investment Group in Grubb & Ellis Company's Atlanta office.

 Grubb & Ellis Healthcare REIT II financed the acquisition using $11.4 million in borrowings under its line of credit with Bank of America, N.A and cash proceeds received from its offering. 

As of Nov. 5, 2010, Grubb & Ellis Healthcare REIT II has sold approximately 12,068,577 shares of its common stock, excluding the shares issued under it distribution reinvestment plan, for approximately $120,375,000 through its initial public offering, which began at the end of the third quarter of 2009.

To date, the REIT has made 11 geographically diverse acquisitions comprised of 21 buildings valued at approximately $162 million, based on purchase price.

Contact:  
Damon Elder of Grubb & Ellis Company, +1-714-975-2659, damon.elder@grubb-ellis.com
 Web Site: http://www.grubb-ellis.com/