Grubb & Ellis Buys Parkway Medical Center
- Apr 14, 2010
April 14, 2010
By Allison Landa, News Editor
Grubb & Ellis Healthcare REIT II, Inc. on Wednesday announced that it has acquired Parkway Medical Center, an 88,000 square-foot, two-building medical office portfolio in the Cleveland suburb of Beachwood.
The medical center is about 10 miles from Cleveland’s central business district and a half a mile from the 53-acre Ahuja Medical Center currently under construction. It also has proximity to Interstate 271.
Parkway Medical Center is currently 87 percent leased to 35 tenants, including Rapid Medical Research, The MetroHealth System and ID Consultants. The larger of the center’s two buildings is 51,000 square feet and was built in 1972; the smaller building is 37,000 square feet and was built in 1987. Nearly $1.6 million in capital investments have been made since 2004; these include upgraded lobbies, hallways, replaced parking lots, roofs and lighting, along with the installation of new HVAC systems and boilers.
The acquisition is the fourth for Grubb & Ellis Healthcare REIT II, which is relatively new. The REIT has also acquired properties in New Orleans and St. Cloud, Minn., with a fourth potential acquisition near Denver.
“Parkway Medical Center is well located in a major metropolitan region and less than one mile from what will be a significant new hospital,” Grubb & Ellis Healthcare REIT II president and chief operating officer Danny Prosky said when announcing the news. “As we build Grubb & Ellis Healthcare REIT II, we are not only targeting attractive, performing medical-related assets located near significant medical campuses, we are also seeking to attain geographic diversification, which we are clearly achieving with our initial acquisitions.”