The property, located on nearly ten acres at 1035 and 1045 Southcrest Drive, consists of 81,000 sf of gross leaseable space. The two new buildings, completed in 2005 and late 2006, are currently 79% leased, Danny Prosky, executive vice president of acquisitions for Grubb & Ellis Healthcare REIT, tells GlobeSt.com. The buildings boast close proximity to Interstates 75 and 675 and are within five miles of two regional not-for-profit hospitals; Southern Regional Medical Center and Henry Medical Center.
Prosky says many of the properties the REIT buys are on medical campuses, or close to them, as these two new buildings are. The transaction was facilitated by Douglas Connell of Grubb & Ellis and financed by funds raised through the REIT offering, plus $12.9 million from Wachovia Financial Services Inc., according to the SEC filing.
This is the REIT's fifth acquisition in the Atlanta metropolitan area. Previous purchases include Northmeadow Medical Center, a 51,000-sf facility in Roswell; Gwinnett Professional Center in Lawrenceville; and the 92,000-sf Yorktown Medical Center and 21,000-sf Shakerag Medical Center, both in Fayette County.
"We're trying to create a geographic focus for the REIT and build portfolio presence," says Prosky of the recent acquisitions in the Atlanta metro area. "We feel we could take our current portfolio and market it as a package and sell it at a substantially lower cap rate. We don't intend to do that, but it's something we could do."
According to a release, Grubb & Ellis Healthcare REIT currently has completed 31 geographically diverse acquisitions with purchase prices totaling approximately $595 million.
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