Chesterfield rehab hospital sold to joint venture

Grubb & Ellis Healthcare REIT Inc. said it formed a joint venture with Duke Realty's BD St. Louis Development LLC subsidiary to buy a Chesterfield hospital building and campus from Duke.

The hospital is master leased to St. John's Mercy Rehabilitation LLC, a joint venture between St. John's Mercy Health System and Centerre Healthcare.

Financial terms of the deal, which closed Dec. 20, were not disclosed in a release late Friday. Duke Realty holds a 20 percent interest while Grubb & Ellis Healthcare REIT maintains an 80 percent ownership interest in the joint venture and acts as managing member, according to the release.

The 50-bed, 112,000-square-foot hospital, at 14561 N. Outer 40 Road, west of Timberlake Manor Parkway, opened in July. The more than seven-acre property also hosts a two-story, 90,000-square-foot parking garage that can accommodate 286 vehicles.

St. John's Mercy Medical Center in Creve Coeur partnered with Clayton-based Centerre Healthcare Corp. to build the $25 million, three-story hospital. Duke Realty developed the facility and retained ownership of the land and structure.

St. John's is a member of the Sisters of Mercy Health System, which oversees 18 acute care hospitals and one heart hospital in Missouri, Arkansas, Kansas, Oklahoma and Texas.

Centerre develops and operates inpatient rehabilitation facilities in partnership with acute care hospitals.

Duke Realty was represented by Philip Mahler and Jeffrey Cooper of Savills Granite of New York. Financing was provided by National City Bank and arranged by William Bennett. Asset management services will be provided by Grubb & Ellis Co.

Grubb & Ellis Healthcare REIT is sponsored by Santa Ana, Calif.-based commercial real estate services firm Grubb & Ellis Co. (NYSE: GBE).
Indianapolis-based Duke Realty Corp. (NYSE: DRE) is an office/industrial real estate development and services firm.