Business Context and Reporting Period
This Form 8-K was filed by Grubb & Ellis Healthcare REIT, Inc. (referred to in the request as Healthcare Realty Trust Inc) on June 24, 2008. The report discloses a material acquisition event and related financing activities.
Key Financial Metrics and Transaction Details
- Acquisition Target: SouthCrest Medical Plaza, located in Stockbridge, Georgia.
- Purchase Price: $21,176,000 plus closing costs.
- Financing Structure:
- Secured loan from Wachovia Financial Services, Inc.: $12,870,000.
- Remaining funds sourced from the company's initial public offering.
- Transaction Costs:
- Acquisition fee paid to advisor/affiliate: $635,000 (3.0% of purchase price).
- Real estate sales commission paid by Seller to sponsor: $420,000 (2.0% of sales price).
Note: This filing does not provide consolidated revenue, profit, cash flow, or margin data for the reporting period.
Material Changes
The primary material change is the expansion of the company's property portfolio through the acquisition of the SouthCrest property from an unaffiliated third party, SouthCrest Medical Plaza I, LLC. This transaction increased the company's debt load by $12,870,000 via the new secured loan.
Outlook, Risks, and Management Commentary
Management announced the acquisition via a press release on June 26, 2008, incorporated as Exhibit 99.1. The filing does not contain specific forward-looking guidance, risk factors, or contingencies beyond the standard disclosure that the information is not deemed "filed" under Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Verify the occupancy status and lease terms of the SouthCrest Medical Plaza.
- Confirm the interest rate and maturity date of the $12,870,000 Wachovia loan.
- Review the full text of the June 26, 2008 press release (Exhibit 99.1) for additional strategic context.
- Assess the impact of the $635,000 acquisition fee on the company's immediate cash position.