SANTA ANA, Calif., July 3 /PRNewswire/ -- Grubb & Ellis Healthcare
REIT, Inc. today announced the acquisition of Renaissance Medical Centre, a
five- story, Class A medical office building located in the Salt Lake City
suburb of Bountiful, Utah.
Located at 1551 S. Renaissance Drive, Renaissance Medical Centre
consists of approximately 112,000 square feet of gross leaseable area.
Completed in 2004, Renaissance Medical Centre was built to provide an
alternative to hospital surgery in order to reduce costs and also retain
patients that had previously traveled to Salt Lake County for services. The
property is part of the larger Renaissance Towne Centre mixed-use
development, which has plans to combine retail, entertainment, office,
residential and healthcare properties in one area.
Renaissance Medical Centre is approximately 88 percent leased, and is
anchored by MountainWest Surgical Center, which leases approximately 30,000
square feet of the building.
"Renaissance Medical Centre is a high quality asset that is part of a
new development in an outstanding area, and less than three miles away from
Lakeview Hospital, a major regional medical center," said Danny Prosky,
Executive Vice President of Acquisitions for Grubb & Ellis Healthcare REIT.
"We believe this acquisition corresponds perfectly with the overall
investment strategy of Grubb & Ellis Healthcare REIT; to invest in a
diversified portfolio of healthcare-related real estate, focusing primarily
on investments that produce current income."
Lakeview Hospital is a 128-licensed-bed hospital offering various
services such as cardiac rehabilitation, industrial medicine, behavioral
medicine and cardiology.
Renaissance Medical Centre is easily accessible by Interstate 15 and
Highway 89, as well as the newly developed FrontRunner Commuter station,
Woods Cross. Tenants and patients have access to a public parking facility
offering 496 parking spaces in the adjacent parking structure east of the
property, as well as 21 parking spaces on the west side of the property.
The property was acquired from an unaffiliated third party represented
by Chris Bodnar of CB Richard Ellis - Colorado Private Client Group. Grubb
& Ellis Healthcare REIT primarily financed the acquisition of Renaissance
Medical Centre through the assumption of the two existing loans on the
property, which are serviced by Midland Loan Services, Inc. and Wachovia
Bank, N.A and cash on hand.
As of June 20, 2008, 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.
Grubb & Ellis Healthcare REIT offers a monthly distribution of 7.25
percent per annum and, as of June 30, 2008, has made 36 geographically
diverse acquisitions for a total of 109 buildings valued at approximately
$790 million, based on purchase price.
About Grubb & Ellis
Grubb & Ellis Company (NYSE: GBE), one of the largest and most
respected commercial real estate services companies, is the sponsor of
Grubb & Ellis Healthcare REIT, Inc. With more than 130 owned and affiliate
offices worldwide, Grubb & Ellis offers property owners, corporate
occupants and investors comprehensive integrated real estate solutions,
including transaction, management, consulting and investment advisory
services supported by proprietary market research and extensive local
market expertise.
Grubb & Ellis and its subsidiaries are leading sponsors of real estate
investment programs that provide individuals and institutions the
opportunity to invest in a broad range of real estate investment vehicles,
including tax-deferred 1031 tenant-in-common (TIC) exchanges; public
non-traded real estate investment trusts (REITs) and real estate investment
funds. As of March 31, 2008, more than $3.4 billion in investor equity has
been raised for these investment programs. The company and its subsidiaries
currently manage a growing portfolio of more than 218 million square feet
of real estate. In 2007, Grubb & Ellis was selected from among 15,000
vendors as Microsoft Corporation's Vendor of the Year. For more information
regarding Grubb & Ellis Company, please visit http://www.grubb-ellis.com.
FORWARD-LOOKING LANGUAGE
This press release contains certain forward-looking statements with
respect to the importance that the property adds to the Grubb & Ellis
Healthcare REIT portfolio. Forward-looking statements are statements that
are not descriptions of historical facts and include statements regarding
management's intentions, beliefs, expectations, plans or predictions of the
future, within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Because such statements include risks, uncertainties and
contingencies, actual results may differ materially from those expressed or
implied by such forward-looking statements. These risks, uncertainties and
contingencies include, but are not limited to, the following: uncertainties
regarding changes in the healthcare industry; uncertainties relating to
changes in general economic and real estate conditions; uncertainties
relating to the local economy and demand for healthcare related services in
the Bountiful, Utah and the greater Salt Lake City, Utah area; the
strengths and financial condition of Renaissance Medical Centre and its
tenants, Renaissance Towne Centre and Lakeview Hospital; the uncertainties
relating to the implementation of our real estate investment strategy; and
other risk factors as outlined in the company's prospectus, as amended from
time to time, and as detailed from time to time in our periodic reports, as
filed with the Securities and Exchange Commission.
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