Grubb & Ellis Healthcare REIT Acquires Chesterfield Rehabilitation Center in Chesterfield, Missouri in a Joint Venture with Duke
December 28 2007 - 5:22PM
PR Newswire (US)
SANTA ANA, Calif., Dec. 28 /PRNewswire-FirstCall/ -- Grubb &
Ellis Healthcare REIT, Inc. has entered into a joint venture with
BD St. Louis Development LLC, a subsidiary of Duke Realty
Corporation (NYSE:DRE) to acquire the Chesterfield Rehabilitation
Center in Chesterfield, Missouri. The transaction closed on
December 20, 2007. Grubb & Ellis Healthcare REIT will maintain
an 80% ownership interest in the joint venture and act as managing
member while Duke Realty holds the remaining 20% interest
Chesterfield Rehabilitation Center is a 50-bed, newly constructed,
three-story inpatient rehabilitation hospital in the St. Louis
suburb of Chesterfield, Missouri. Built in June 2007 on more than
seven acres, the 112,000-square-foot hospital offers a full range
of rehabilitative services in its Outpatient Physical Therapy and
Brain and Spinal Cord Injury departments. The property offers ample
parking with a two-story, 90,000-square-foot parking garage that
can accommodate 286 vehicles. Chesterfield Rehabilitation Center is
located five miles from the second largest hospital in the
metropolitan St. Louis area, St. John's Medical Center, a 979-bed
full-service hospital sited on an 80-acre campus. Chesterfield
Rehabilitation Center is a replacement facility for a recently
closed rehabilitation hospital on the medical center campus and is
currently master leased to St. John's Mercy Rehabilitation, LLC, a
joint venture between St. John's Mercy Health System and Centerre
Healthcare. St. John's Mercy Health System owns and operates St.
John's Medical Center and is a member of the Sisters of Mercy
Health System, the ninth-largest Catholic healthcare system in the
United States with 19 hospitals in seven states. Centerre is a
national developer and operator of inpatient rehabilitation
facilities in partnership with leading acute care hospitals.
"Demand for healthcare services in this country is growing rapidly,
as is demand for quality healthcare facilities," explained Danny
Prosky, vice president of acquisitions for Grubb & Ellis
Healthcare REIT. "The acquisition of Chesterfield Rehabilitation
Center further strengthens and diversifies the Grubb & Ellis
Healthcare REIT, which has rapidly grown to become one of the
finest portfolios of healthcare facilities in the nation." Duke
Realty was represented by Philip B. Mahler and Jeffrey H. Cooper of
Savills Granite. Financing was provided by National City Bank and
arranged by William Bennett. Asset management services will be
provided by Grubb & Ellis Company. As of December 14, 2007,
Grubb & Ellis Healthcare REIT has sold approximately 20.4
million shares of its common stock, excluding the shares issued
under its distribution reinvestment plan, for more than $203
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 has made 19
geographically-diverse acquisitions with a total portfolio valued
in excess of $392 million. 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 offer 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 September 30, 2007,
nearly $3 billion in investor equity has been raised for these
investment programs. Grubb & Ellis and its subsidiaries
currently manage a growing portfolio of more than 214 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/. THIS PRESS RELEASE IS FOR
INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. FORWARD-LOOKING
LANGUAGE This press release contains certain forward-looking
statements with respect to the growing demand for healthcare
services and quality healthcare facilities, and the strength 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 economy of the St.
Louis, Missouri area; the strengths and financial conditions of
Chesterfield Rehabilitation Center and St. John's Mercy Health
System; 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. DATASOURCE: Grubb &
Ellis CONTACT: Jill Swartz of Grubb & Ellis, +1-714-667-8252,
ext. 251, Web site: http://www.grubb-ellis.com/ Company News
On-Call: http://www.prnewswire.com/comp/136726.html
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