Business Context and Reporting Period
This Form 8-K Current Report was filed by Grubb & Ellis Healthcare REIT, Inc. (also referenced as Healthcare Realty Trust Inc in metadata) on March 19, 2008. The filing reports the completion of a real estate acquisition and the associated financing activities.
Key Financial Metrics and Transaction Details
- Acquisition Price: $8,150,000 plus closing costs for the Liberty Falls Medical Plaza in Liberty Township, Ohio.
- Tenant Improvement Credit: $800,000 received from the seller.
- Financing: $7,600,000 borrowed under a secured revolving line of credit with LaSalle Bank National Association and KeyBank National Association.
- Transaction Fees: $245,000 (3.0% of purchase price) paid to the Advisor and its affiliate.
- Lease Holdback: Amended to $350,000 pertaining to the Chrestensen/Crawford Lease.
- Debt Capacity: The transaction utilized a portion of an $80,000,000 secured revolving line of credit.
Material Changes and Transaction History
The purchase agreement underwent multiple amendments prior to closing:
- October 30, 2006: Initial agreement signed at $7,600,000.
- December 21, 2006: First Amendment increased the price to $7,750,000.
- March 11, 2008: Second Amendment increased the price to $8,150,000, set the lease holdback at $350,000, required a certificate of occupancy, and set the closing date no later than March 31, 2008.
- March 19, 2008: Rights assigned to a subsidiary, G&E Healthcare REIT Liberty Falls Medical Plaza, LLC, and the acquisition closed.
Guidance, Risks, and Unusual Items
The filing does not provide forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard transaction details. The filing notes that financial statements and pro forma information are not practical to provide at this time and will be filed as an amendment within 71 days of the filing deadline. A press release regarding the acquisition was issued on March 25, 2008.
Investor Verification Checklist
- Verify the final closing date and confirmation of the certificate of occupancy requirement.
- Review the upcoming amendment to this 8-K for the required financial statements and pro forma information.
- Confirm the remaining availability under the $80,000,000 LaSalle/KeyBank revolving line of credit post-borrowing.
- Examine the specific terms of the Chrestensen/Crawford Lease associated with the $350,000 holdback.