Grubb & Ellis Healthcare Reit II has entered into an agreement to acquire Parkway Medical Center, a two-building medical office portfolio totalling approximately 88,000 square feet in the Cleveland suburb of Beachwood, Ohio.

The acquisition is subject to customary closing conditions and the satisfaction of other requirements as detailed in the agreement.

Located at 3609 and 3619 Park East Drive, Parkway Medical Center is approximately ten miles from the Cleveland Central Business District and one half mile from the 53-acre Ahuja Medical Center currently being developed by University Hospitals.

"Parkway Medical Center is well located in a major metropolitan region and less than one mile from what will be a significant new hospital," says Jeff Hanson, chairman and chief executive officer.

The larger of the two buildings, approximately 51,000 square feet, was built in 1972, while the smaller building, approximately 37,000 square feet, was built in 1987.

Since 2004, nearly USD1.6m has been invested in capital improvements at Parkway Medical Center, including upgraded lobbies, hallways, replaced parking lots, roofs and lighting, as well as the installation of new HVAC systems and boilers.

The facility is currently 87 per cent leased to 35 tenants, including University Hospital of Cleveland, Rapid Medical Research, The MetroHealth System and ID Consultants.