UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 22, 2013 (August 21, 2013)

 

American Realty Capital Healthcare Trust II, Inc.

 

(Exact Name of Registrant as Specified in Charter)

 

Maryland   333-184677   38-3888962

(State or other jurisdiction

of incorporation or organization)

  (Commission File Number)  

(I.R.S. Employer

Identification No.)

         

 

405 Park Avenue

New York, New York 10022

(Address, including zip code, of Principal Executive Offices)

Registrant's telephone number, including area code: (212) 415-6500

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

Oak Lawn Medical Center

 

On August 21, 2013, following the completion of its due diligence review of the Oak Lawn Medical Center located in Oak Lawn, Illinois (the “Property”), American Realty Capital Healthcare Trust II, Inc. (the “Company”) finalized the prerequisite conditions to acquire the Property and assumed the obligations of an affiliate of its sponsor under the purchase and sale agreement, dated July 15, 2013, related to the Property. The Company subsequently acquired the fee simple interest in the Property on August 21, 2013. Pursuant to the terms of the purchase and sale agreement, the Company’s obligation to close upon the acquisition was subject to the satisfactory completion of a due diligence review of the Property, among other conditions. The purchase and sale agreement contains customary representations and warranties by the seller.

 

The description of the Property set forth in Item 2.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.01 in its entirety.

 

Item 2.01. Completion of Acquisition or Disposition of Assets.

 

On August 21, 2013, the Company, through a wholly owned subsidiary of its operating partnership, closed its acquisition of the fee simple interest in the Property for a contract purchase price of $10.3 million. The seller of the Property was OLMC Partners, LLC, an entity which has no material relationship with the Company, and the acquisition was not an affiliated transaction. The Company funded the acquisition of the Property with proceeds from its ongoing initial public offering of common stock.

 

The Property contains 26,324 rentable square feet and is 100% leased to five tenants: Advocate Health and Hospitals Corporation d/b/a Advocate Medical Group; Pulmonary Consultants, S.C.; Hanger Prosthetics & Orthotics, Inc.; Quest Diagnostics LLC; and Adult Primary Care Center.

 

The following table provides information relating to lease commencement and termination dates, rentable square feet, rental escalations, renewal options and annualized cash rental income for the five tenants:

 

Tenant Lease
Commencement
Date
Lease
Termination
Date

Rentable
Square
Feet
Annualized Cash
Rental
Income
(in thousands)
Rental
Escalations
Renewal
Options
Advocate Health and Hospitals Corporation d/b/a Advocate Medical Group February
2008
February
2018
13,069 $0.4 million 3.0% annually Four – five year options
Pulmonary Consultants, S.C. June
2008
June
2018
4,128 $0.2 million 3.5 % annually One – five year option
Hanger Prosthetics & Orthotics, Inc. June
2007
October 2017 3,272 $0.1 million 3.5 % annually Two – five year options
Quest Diagnostics LLC January
2009
January
2017
2,441 $0.1 million 3.5 % annually One – three year option
Adult Primary Care Center December
2008
December
2018
3,414 $0.1 million 3.5 % annually Two – five year options

 

 
 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

AMERICAN REALTY CAPITAL HEALTHCARE TRUST II, INC.

       
Date: August 22, 2013 By: /s/ Thomas P. D’Arcy  
  Thomas P. D’Arcy  
  Chief Executive Officer