$14M Buys 80,000 SF of Medical Office

HIGHLANDS RANCH, CO-Grubb & Ellis Healthcare REIT Inc. has acquired an 80,000-sf medical office campus in this Denver suburb for $14.5 million, according to SEC filings. Called Highlands Ranch Healthcare Plaza, the campus is 82% leased.

Located on seven acres within the master planned community of Highlands Ranch, the campus consists of two adjacent three-story medical office buildings built in the mid-1980s and parking for 335 vehicles. Tenants include Littleton Pediatric Center, Family & Occupational Medicine and Vision Care Specialists.

The seller was an entity of Broadreach Capital Partners, a firm created by four former executives of Spieker Properties Inc., a Menlo Park, CA-based REIT that was bought by Equity Office Properties Trust in 2001. Broadreach was represented in the sale by Geoff Baukol of CB Richard Ellis.

Acquisition financing was provided by Wachovia Bank, LaSalle Bank and KeyBank. Wachovia provided a secured loan of $8.8 million. Another $2.9 million came from a secured revolving line of credit with LaSalle and Key.

The remainder came from funds raised through the company’s initial public offering. As part of the deal G&E Healthcare REIT’s adviser, Triple Net Properties, was paid an acquisition fee of $435,000, or 3% of the purchase price.