Heavenrich & Company Sells $45 Million Skilled Nursing Facility Portfolio in Virginia to Grubb & Ellis Healthcare REIT II
Oct. 1, 2010 - Heavenrich & Company, Inc. today announced that it had sold a portfolio of seven skilled nursing facilities located throughout Virginia. Heavenrich represented Smith/Packett of Roanoke, Virginia, the managing member of the Portfolio. The buyer was Grubb & Ellis Healthcare REIT II.
The approximately 230,000-square-foot, 563-bed portfolio was built between 1989 and 2004. Laurel Healthcare and Kissito Healthcare operate the facilities under long-term absolute net leases. The acquisition closed on Sept. 16.
“In order to maximize the value for the Smith/Packett investors, we took a look at the components of the total portfolio and recognized the need to break apart the offering. Demand was very strong for newer triple net leased skilled nursing facilities with good operators and good coverage”, said Adam Heavenrich of Heavenrich & Company. “This transaction affords Smith/Packett additional financial flexibility to do what they do best: New development for operators in skilled and assisted living in the MidAtlantic States”.
Jim Smith, CEO of Smith/Packett said, “The Grubb & Ellis transaction was well timed and well executed by Heavenrich.”
According to Danny Prosky, president and chief operating officer of Grubb & Ellis Healthcare REIT II, "Skilled nursing facilities in general are of great interest to us because there is a fairly constrained supply and they cater to a rapidly growing segment of our population.
The $45 million acquisition is comprised of the following properties:
The Laurels of Charlottesville – Charlottesville. The Laurels of Charlottesville is a single-story skilled nursing facility constructed in 2004 comprised of 120 beds and 48,000 square feet on a 3.81-acre parcel. The property currently has a lease in place that runs through June 2016 with two additional five-year renewal options.
Bland Nursing & Rehabilitation Center – Bastian. Bland Nursing and Rehabilitation Center is a two-story facility built in 1989 that is comprised of 57 beds and 31,000 square feet on a 4.52-acre parcel. The property currently has a lease in place that runs through January 2025 with two additional 10-year renewal options.
Maple Grove Health Care Center – Lebanon. Maple Grove Health Care Center is a single-story building constructed in 1990 that consists of 60 beds and 23,000 square feet on a 4.12-acre parcel. The property currently has a lease in place that runs through January 2025 with two additional 10-year renewal options.
The Brian Center of Fincastle – Fincastle. The Brian Center of Fincastle is a single-story skilled nursing facility built in 1990 that consists of 60 beds and 27,000 square feet on a 5.55-acre parcel. The property currently has a lease in place that runs through January 2025 with two additional 10-year renewal options.
The Brian Center of Low Moor – Low Moor. The Brian Center of Low Moor is a single-story assisted living/skilled nursing facility constructed in 1989 comprised of 26 assisted living beds and 60 skilled nursing beds for a total of 86 beds. The facility totals 43,000 square feet on a 3.01-acre parcel with a lease in place that runs through January 2025 with two additional 10-year renewal options. The Brian Center of Low Moor is located on the campus of Alleghany Regional Hospital, a 204-bed general acute care hospital.
The Laurels of Willow Creek – Midlothian. The Laurels of Willow Creek is a single-story skilled nursing facility built in 1991 that consists of 120 beds and 38,000 square feet on a 5.28-acre parcel. The property currently has a lease in place that runs through February 2025 with two additional five-year renewal options.
The Springs Nursing Facility – Hot Springs. The Springs Nursing Facility is a single-story facility constructed in 1990 comprised of 60 beds and 20,000 square feet on a 4.67-acre parcel. The property currently has a lease in place that runs through January 2025 with two additional 10-year renewal options.
About Smith/Packett
Smith/Packett Med-Com, LLC is widely considered to be the premier senior housing and healthcare developer in the Mid-Atlantic and Southeast states. Over the past 28 years, the company has developed or acquired more than 200 senior housing and healthcare facilities with an aggregate value in excess of $1 billion.
About Grubb & Ellis Healthcare REIT II
Grubb & Ellis Healthcare REIT II is sponsored by Grubb & Ellis Company (NYSE: GBE). Grubb & Ellis is one of the largest and most respected commercial real estate services and investment companies in the world. Grubb & Ellis Company's 6,000 professionals in more than 100 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors.
About Heavenrich & Company, Inc.
Heavenrich & Company is a financial advisory company serving independent, assisted living, Alzheimer and skilled nursing organizations. Since 1994, Heavenrich has advised public and privately held for-profit and non-profit healthcare organizations in mergers, acquisitions and finance.