Business Context and Reporting Period
This Form 8-K is filed by Grubb & Ellis Healthcare REIT, Inc. (referred to in metadata as Healthcare Realty Trust Inc) on May 29, 2008. The report discloses a property acquisition and related financing activities.
Key Financial Metrics and Transaction Details
- Acquisition Price: $25,700,000 plus closing costs for 5995 Plaza Drive in Cypress, California.
- Financing Structure: $26,050,000 borrowed under a secured revolving line of credit; remaining balance funded by IPO proceeds.
- Debt Facility: $80,000,000 secured revolving line of credit with LaSalle Bank National Association and KeyBank National Association.
- Transaction Fees: $771,000 (3.0% of purchase price) paid to the advisor and its affiliate.
Material Changes
The company acquired a new healthcare property from an unaffiliated third party, The Realty Associates Fund VI, L.P. This transaction increased the company's debt load under its existing credit facility and utilized remaining capital from its initial public offering.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard disclosure that the press release information is not deemed "filed" under Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Verify the exact closing costs associated with the $25,700,000 purchase price.
- Confirm the remaining availability under the $80,000,000 LaSalle line of credit post-transaction.
- Review the attached press release (Exhibit 99.1) for details on the property's occupancy and lease terms.
- Assess the impact of the $771,000 acquisition fee on near-term cash flow.