Business Context and Reporting Period
This Form 8-K was filed by Grubb & Ellis Healthcare REIT, Inc. (referred to in metadata as Healthcare Realty Trust Inc) on June 3, 2008. The report discloses a material acquisition and related financing activities.
Key Financial Metrics and Transaction Details
- Acquisition: Purchased the Nutfield Professional Center in Derry, New Hampshire, from The Birches Development Corporation.
- Purchase Price: $14,200,000 plus closing costs.
- Financing: The acquisition was funded with $14,800,000 in borrowings under an existing $80,000,000 secured revolving line of credit with LaSalle Bank National Association and KeyBank National Association.
- Transaction Fees: An acquisition fee of $426,000 (3.0% of the purchase price) was paid to the company's advisor and its affiliate.
Material Changes
The primary material change is the expansion of the company's real estate portfolio through the acquisition of the Nutfield property. The filing notes that the company previously disclosed the existence of the $80,000,000 credit facility in reports filed on September 14, 2007, and December 18, 2007.
Guidance, Outlook, and Risks
The filing does not provide updated financial guidance, outlook, or specific risk factors beyond the standard disclosure that the information furnished under Item 7.01 is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Verify the details of the Nutfield Professional Center acquisition in the attached press release (Exhibit 99.1).
- Confirm the remaining availability under the $80,000,000 LaSalle line of credit following the $14,800,000 drawdown.
- Review the terms of the acquisition fee paid to the advisor.