SANTA ANA, CA-NNN Healthcare/Office REIT Inc., sponsored by locally based Triple Net Properties LLC, has acquired three senior care campuses in Florida for $52 million in cash and debt, according to SEC filings. The campuses collectively provide 733 licensed beds and 667 operating beds, encompassing approximately 354,500 sf.
Located in the cities of Jacksonville (Duval County), Sunrise (Broward County) and Winter Park (Orange County), each campus consists of a skilled nursing facility and an assisted living facility that are connected by an enclosed hallway. Constructed in the latter half of the 1980s, the properties are 100% leased to a third-party operator, according to Triple Net.
Healthcare/Office REIT had sold approximately 15.6 million shares of its common stock for more than $154.1 million through its initial public offering, which began in the third quarter of 2006. NNN Healthcare/Office REIT's VP of acquisitions Danny Prosky says the portfolio marks the REIT's first in the skilled nursing and assisted living arena.
The sellers were Health Quest Realty XVII, Health Quest Realty XXII and Health Quest Realty XXXV, entities controlled by the Garatoni family of Indiana, which includes Lawrence H. Garatoni, Judith A. Garatoni and Steven L. Garatoni, according to SEC filings.
The Jacksonville campus sits on 16 acres and includes the Regents Park Nursing Center and the Deerwood Place Assisted Living Residence. The Winter Park campus sits on 20 acres and includes the Regents Park Nursing Center and the Westchester Assisted Living Center. The Sunrise campus sits on nine acres and includes the Beacon Pointe Nursing Center and the Westchester Assisted Living Center. The Jacksonville campus sold for $15.6 million and the other two each sold for $18.2 million, according to SEC filings.
To finance the acquisition, the REIT used a $30.5-million loan from Key Bank, $11 million of a $50-million line of credit with LaSalle Bank, and proceeds from its initial public offering. An acquisition fee of $1.6 million, 3% of the purchase price, was paid to Triple Net Properties, its advisor and affiliate.
The Garatoni family was represented in the transaction by William T. Mulligan, Daniel C. Revie and K. Nicholas Glaisner of Ziegler Capital Markets Group.
In August, NNN Healthcare/Office REIT purchased 1 and 4 Market Exchange in Columbus, OH. The buildings are located at 500-510 E. Main St. The properties, a three-story, 56,000-sf structure and a five-story, 60,000-sf building, were built in 2003.
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