Business Context and Reporting Period
This Form 8-K is filed by NNN Healthcare/Office REIT, Inc. (referred to in the text as the registrant, though the metadata lists Healthcare Realty Trust Inc) for the reporting period ending November 15, 2007. The filing reports the completion of a real estate acquisition and the associated financing activities.
Key Financial Metrics
- Acquisition Price: $11,850,000 for the Northmeadow Medical Center in Roswell, Georgia.
- Financing: $12,400,000 borrowed under a secured revolving line of credit with LaSalle Bank National Association to fund the purchase and closing costs.
- Transaction Fees: $356,000 (3.0% of the purchase price) paid to the Advisor and its affiliate.
- Debt Capacity: The company operates under a $50,000,000 secured revolving line of credit.
- Revenue/Profit/Cash Flow: The filing text does not provide specific revenue, profit, cash flow, or margin figures for the period.
Material Changes
The primary material change is the acquisition of the Northmeadow property on November 15, 2007. The purchase price was reduced from an initial agreement of $11,875,000 to $11,850,000 via a First Amendment dated October 19, 2007. The transaction was executed by assigning the purchase agreement from Triple Net Properties, LLC to a wholly-owned subsidiary, NNN Healthcare/Office REIT Northmeadow, LLC.
Outlook, Risks, and Unusual Items
The filing incorporates a press release issued on November 20, 2007, regarding the acquisition. No specific forward-looking guidance, risk factors, or contingencies are detailed within the text of this specific 8-K filing. The company noted that pro forma financial information is not practical to provide at this time and will be filed as an amendment within 71 days of the filing deadline.
Investor Verification Checklist
- Verify the final closing costs included in the $12,400,000 borrowing amount.
- Review the attached Exhibits 10.1 through 10.3 for specific terms of the purchase agreement and assignment.
- Monitor the upcoming amendment to this filing for the required pro forma financial information.
- Confirm the utilization status of the remaining $37,600,000 capacity on the LaSalle line of credit.