Grubb & Ellis Healthcare REIT bought its five-property portfolio, called Medical Portfolio 4, from affiliated entities of the Dallas-based Cirrus Group LLC. The acquisition includes medical office buildings in Arizona, Ohio and Texas.
In the case of Strategic Storage Trust, the REIT bought two self-storage facilities in Mississippi and Florida for a combined value of $10.76 million from U-Stor-It LP, paying approximately two-thirds of the total in cash. Strategic Storage, launched earlier this year, is a $1 billion nontraded REIT targeting properties in the self-storage industry.
The Medical Portfolio 4 that Grubb & Ellis Healthcare REIT acquired is "a geographically diverse group of healthcare facilities that strengthen the Grubb & Ellis Healthcare REIT portfolio," according to Danny Prosky, executive vice president of acquisitions for the REIT. Prosky notes that each property of Medical Portfolio 4 is on a medical campus or close to one, which "adds to the attractiveness of each of these properties and the value they present to our REIT."
The five properties are: A five-story, 78,000-sf medical office building at 6036 N. 19th Ave. in Phoenix; a three-story, 30,000-sf building at 6789 Ridge Rd. in Parma, OH; a two-story, 48,000-sf building at 1305 W. Jefferson St. in Waxahachie, TX; a single-story, 25,000-sf building at 950 E. Belt Line Rd. in the Dallas suburb of Cedar Hill; and a two-story, 43,000-sf building at 4501 Joe Ramsey Blvd. in Greenville, TX.
The Cirrus Group was represented by James Moloney and Joe Dominguez of Cain Brothers RE, LLC. Financing for the acquisition was primarily provided by Bank of America, as well as debt assumption for 6036 N. 19th Ave.
[IMGCAP(2)]Strategic Storage Trust, with the closing of its transaction, brings more than 1,300 storage units into its portfolio. The REIT's business plan aims to capitalize on creating greater efficiency in a self-storage sector that is comparatively stable but also fragmented among many smaller owner-operators.
H. Michael Schwartz, SSTI's chairman and CEO, comments that theacquisition of the two properties in Biloxi, MS and Gulf Breeze, FL was "structured for success" despite the credit crunch. "We put a lot of cash down," Schwartz says. "Given the economic uncertainty, we feel that it's prudent to reduce our reliance on debt."
Schwartz says that SSTI expects to uncover "significant buying opportunities in self-storage real estate" in today's market, which he says offers "better values than we've seen in the last five to seven years." SST is sponsored by US Commercial LLC, which manages a portfolio of 4.8 million sf of commercial properties, including 2.8 million sf of self storage facilities, with a combined market value of more than $563 million.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
