Grubb & Ellis Healthcare Reit II has acquired Cape Girardeau Long-Term Acute Care Hospital, a single-story, 26,000-square-foot, class A single-tenant facility in Missouri.

Located at 3255 Independence St., approximately 115 miles to the south of St. Louis and 170 miles to the north of Memphis, the hospital is within one-and-a-half miles of the 258-bed St. Francis Medical Center, the region's largest acute care facility and a significant source of referral patients.

Construction of a 208,000-square-foot combined heart hospital and cancer institute is currently underway at the medical centre.

"Cape Girardeau Long-Term Acute Care Hospital is the first of a four property portfolio of long-term acute care hospitals we are in the process of acquiring under a long-term sale leaseback agreement," says Danny Prosky, president and chief operating officer. "The addition of these long-term care centres further diversifies Grubb & Ellis Healthcare Reit II, from both a geographic and asset mix perspective, and provides stable income for at least the next 15 years."

Built in 2006, Cape Girardeau Long-Term Acute Care Hospital is leased by Landmark Holdings of Missouri, which signed a long-term lease through 2025.

Grubb & Ellis Healthcare Reit II financed the acquisition using cash proceeds received from its offering and USD6,500,000 in borrowings under its line of credit with Bank of America.