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ARC Healthcare Trust III Buys in Illinois and Kentucky

American Realty Capital Healthcare Trust III Inc., a publicly registered non-traded real estate investment trust sponsored by AR Capital, acquired the Galesburg Medical Office Portfolio, comprised of two medical office buildings, and Arcadian Cove Assisted Living, a seniors housing community, for a total purchase price of $10.8 million, exclusive of closing costs. The company funded the acquisitions with proceeds from its ongoing initial public offering of common stock.

The Galesburg Medical Office Portfolio is comprised of the Illinois CancerCare Clinic and the Galesburg VA Outpatient Clinic, in Galesburg, Illinois. The portfolio was purchased from Galeva LLC for a total of $6 million, exclusive of closing costs.

The Illinois CancerCare Clinic is a 9,211-square-foot medical office building that was acquired for an aggregate purchase price of $3.4 million. The property is 100 percent leased to Illinois CancerCare P.C. until August 2024. The lease contains rental escalations of 2 percent annually and has three five-year renewal options. Annualized cash rental income for the initial term of the lease is expected to be $0.2 million. The company paid an acquisition fee of $0.1 million to the advisor, American Realty Capital Healthcare III Advisors LLC.

The Galesburg VA Outpatient Clinic, a 9,979-square-foot medical office building, was acquired for an aggregate purchase price of $2.6 million. The property is 100 percent leased to The United States of America until July 2023. Annualized cash rental income, including base operating expense reimbursement for the initial term of the lease, is expected to be $0.3 million. The company paid an acquisition fee of approximately $39,000 to the advisor.

American Realty Capital Healthcare Trust III also purchased Arcadian Cove, a senior housing community in Richmond, Kentucky, from Arcadian Cove LLC and Arcadian Assisted Living LLC for an aggregate purchase price of $4.8 million. The 34,659-square-foot property is 100 percent leased to WP-ARC Arcadian Cove Holdings LLC, a subsidiary of Meridian Senior Living LLC until August 2030. The lease contains rental escalations of 2.5 percent annually and has two five-year renewal options. Annualized cash rental income for the initial term of the lease is expected to be $0.4 million. At closing, the company paid an acquisition fee of $0.1 million to the advisor.

Last week, the DI Wire reported that the company purchased Cedarhurst of Collinsville, a seniors housing community located in Collinsville, Illinois for an aggregate purchase price of $11.6 million.

American Realty Capital Healthcare Trust III Inc. is a publicly registered, non-traded real estate investment trust which seeks to acquire a diversified portfolio of real estate properties, focusing primarily on healthcare-related assets, including medical office buildings, seniors housing and other healthcare-related facilities.