Business Context and Reporting Period
This Form 8-K is filed by Grubb & Ellis Healthcare REIT, Inc. (referred to in the request as Healthcare Realty Trust Inc) for the reporting period ending June 30, 2008. The filing primarily discloses the completion of a significant real estate acquisition and related financing activities.
Key Financial Metrics and Transaction Details
- Acquisition Price: $44,800,000 (plus closing costs) for Medical Portfolio 2.
- Asset Description: A five-building medical office portfolio located in Missouri and Texas.
- Financing Structure:
- $15,807,000 borrowed from the Wachovia Pool (a $50,321,500 secured loan facility).
- $14,497,000 via assumption of an existing loan on two buildings.
- Remaining balance paid in cash.
- Acquisition Fee: $1,344,000 (3% of total purchase price) paid to the advisor and its affiliate.
Material Changes
The primary material change is the expansion of the company's asset base through the acquisition of Medical Portfolio 2 from unaffiliated third parties (STL MRG, LP, LIL Endocenter, LP, Peachy Falls, L.P., and Winghaven, LP). This transaction was completed on June 30, 2008, following a prior announcement on June 27, 2008 regarding the financing arrangement.
Outlook, Risks, and Management Commentary
Management issued a press release on July 3, 2008, announcing the acquisition. The filing notes that the information provided under Item 7.01 is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934. The filing does not provide specific forward-looking guidance, risk factors, or commentary on future performance beyond the details of this specific transaction.
Investor Verification Checklist
- Verify the specific locations and occupancy rates of the five buildings in Missouri and Texas.
- Review the terms of the assumed existing loan on the two buildings to understand interest rates and maturity dates.
- Confirm the impact of the $1,344,000 acquisition fee on the company's immediate cash flow.
- Examine the remaining capacity within the $50,321,500 Wachovia Pool secured loan.