Grubb & Ellis Healthcare Reit II has acquired a 98.75 per cent interest in Pocatello East Medical Office Building, a four-story, 76,000 square foot, class A multi-tenant facility in Idaho.

Pocatello East Medical Office Building is attached to the 250-bed Portneuf Medical Center, the only acute care facility within 50 miles.

A significant renovation and expansion project is currently underway that will add an additional 300,000 square feet to the medical centre in mid-2011.

"We believe the acquisition of Pocatello East Medical Office Building is a home run for Grubb & Ellis Healthcare Reit II," says Danny Prosky, president and chief operating officer. "It is physically attached to the region's largest medical centre, (which is expanding), it is only three years old, and it is fully leased through 2018, providing the Reit with steady and accretive income that supports our stockholder distribution."

Built in 2007, the property is 100 per cent leased to Pocatello Health Services and Pocatello Hospital. Both tenants are signed to long-term leases through 2018 and 2019, respectively.

Grubb & Ellis Healthcare Reit II financed the acquisition using cash proceeds received from its offering and USD5m in borrowings under its line of credit with Bank of America.