Grubb & Ellis Healthcare REIT Nails Down $25M BofA Credit Facility
- Jul 26, 2010
July 26, 2010
By Allison Landa, News Editor
Grubb & Ellis Healthcare REIT II, Inc. has entered into a $25 million secured revolving credit facility with Bank of America, N.A.
The credit facility, which matures on July 19, 2012, may be extended at the option of Grubb & Ellis for an additional year upon certain conditions. It bears interest at a rate equal to LIBOR plus 3.75 percent or 5 percent, whichever is greater.
“This credit facility further strengthens our ability to execute our business plan and more rapidly expand the portfolio of Grubb & Ellis Healthcare REIT II,” Grubb & Ellis chairman and chief executive officer Jeff Hanson said when announcing the news. “Particularly for a new REIT like ours, now is an exceptional time in the market cycle to acquire assets and Bank of America is supporting this effort.”
The credit facility may be used for funding property acquisitions as well as for other general corporate purposes.
Grubb & Ellis Healthcare REIT II seeks to raise up to approximately $3 billion in equity along with acquiring a diversified portfolio of real estate assets, focusing primarily on medical office buildings and other healthcare-related facilities.