Document:

EX-10.7

BILL OF SALE, ASSIGNMENT AND ASSUMPTION

OF LEASES AND CONTRACTS

THIS BILL OF SALE, ASSIGNMENT AND ASSUMPTION OF LEASES AND CONTRACTS (this “Bill of
Sale”) is made as of the 31st day of March, 2010, by and between Stingray
Properties, LLC, a Minnesota limited liability company (“Assignor”), and G&E Healthcare
REIT II Sartell MOB, LLC, a Delaware Limited Liability Company (“Assignee”).

W I T N E S S E T H:

For good and valuable consideration, receipt and sufficiency of which are hereby acknowledged,
Assignor and Assignee hereby agree as follows:

1. Assignor hereby sells, transfers, assigns and conveys to Assignee the following:

(a) All right, title and interest of Assignor in and to all tangible personal
property (collectively, “Personalty”) set forth in the inventory on Exhibit A
hereto and made a part hereof, and located on, and used in connection with the management,
maintenance or operation of that certain land and improvements located at 162 and 166 19th Street
South, Sartell, MN 56377, as more particularly described in Exhibit B hereto and made a
part hereof (collectively, “Real Property”), but excluding tangible personal property owned
or leased by Assignor’s property manager or the tenants of the Real Property under the Tenant
Leases (as defined below).

(b) All right, title and interest of Assignor in and to those certain leases
described on Exhibit C hereto and made a part hereof (collectively, the “Tenant
Leases”), relating to the leasing of space in the Real Property and all of the rights,
interests, benefits and privileges of the lessor thereunder, and to the extent Assignee has not
received a credit therefore under the Purchase Agreement (as defined below), all prepaid rents and
security and other deposits held by Assignor under the Tenant Leases and not credited or returned
to tenants, and all funds held by Assignor pursuant to the Tenant Leases, including without
limitation funds for the payment of taxes, common area maintenance and other operating expenses of
the Property, but subject to all terms, conditions, reservations and limitations set forth in the
Tenant Leases.

(c) All right, title and interest of Assignor in and to all reserve accounts (the
“Reserves”) held in connection with the loan to Assignor from Wells Fargo Bank, N.A. and
secured by Assignor’s interest in the Real Property.

(d) To the extent assignable, all right, title and interest of Assignor in and to
those certain contracts set forth on Exhibit D hereto and made a part hereof, and all
warranties, guaranties, indemnities and claims which exist or may hereafter exist with respect to
the Personalty, the Tenant Leases, the Real Property and the improvements thereon (collectively,
the “Contracts”).

(e) All right, title and interest of Assignor in and to those agreements set forth
on Exhibit E hereto and made a part hereof (collectively, the “License Agreements”)

2. This Bill of Sale is given pursuant to that certain Purchase and Sale Agreement (as
amended, the “Purchase Agreement”) dated as of January 7, 2010, between Assignor and
Assignee (or Assignee’s predecessor in interest), providing for, among other things, the conveyance
of the Personalty, the Tenant Leases, the License Agreements and the Contracts.

3. Assignee hereby accepts the assignment of the Personalty, the Tenant Leases, the Contracts,
the Reserves and the License Agreements and agrees to assume and discharge, in accordance with the
terms thereof, all of the Assignor’s obligations thereunder from and after the date hereof,
including, without limitation, the obligations and duties of Assignor relating to any tenant
deposits either assigned to Assignee or for which Assignee received a credit from Assignor pursuant
to the Purchase Agreement, and all of the lessor, landlord, or Assignor’s obligations or
liabilities under the Tenant Leases, including but not limited to those relating to the physical,
environmental or legal compliance status of the Real Property, arising after the date hereof.
Assignee agrees to indemnify and hold harmless Assignor from any cost, liability, damage or expense
(including reasonable attorneys’ fees) arising out of or relating to Assignee’s failure to perform
any of the foregoing obligations.

4. Assignor agrees to indemnify and hold harmless Assignee from any cost, liability, damage or
expense (including reasonable attorneys’ fees) arising out of or relating to Assignor’s failure to
perform any of the obligations of Assignor under the Tenant Leases, Contracts or License
Agreements, to the extent accruing prior to the date hereof, excluding all of the lessor’s
obligations under the Tenant Leases relating to the physical, environmental or legal compliance
status of the Real Property (whether accruing before or after the date hereof).

5. This Bill of Sale may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same instrument.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

IN WITNESS WHEREOF, the parties hereto have executed this Bill of Sale as of the date first
above written.

	 	 	ASSIGNOR:

	 	 	Stingray Properties, LLC, a Minnesota limited liability company

	 	 	By: /s/ Gary Verkinnes

	 	 	Name: Gary Verkinnes

Title: Partner

	 	 	ASSIGNEE:

	 	 	G & E Healthcare REIT II Sartell MOB, LLC, a Delaware limited liability company

By: /s/ Danny Prosky

Name: Danny Prosky

Title: Authorized SignatoryEX-10.8

	 	 	 	 	 
	WELLS FARGO BANK,	 	CONSTRUCTION LOAN NOTE
	NATIONAL ASSOCIATION	 	OF STINGRAY PROPERTIES, LLC
	$	4,000,000.00	 	 	September 16, 2005

FOR VALUE RECEIVED, STINGRAY PROPERTIES, LLC (the “Borrower”) promises to pay to the order of
Wells Fargo Bank, National Association (the “Bank”), at its principal office or such other
address as the Bank or holder may designate from time to time, the principal sum of FOUR MILLION
AND NO/100s DOLLARS ($4,000,000.00), or the amount shown on the Bank’s records to be
outstanding, plus interest (calculated on the basis of actual days elapsed in a 360-day year)
accruing each day on the unpaid principal balance. Absent manifest error, the Bank’s records
shall be conclusive evidence of the principal and accrued interest owing hereunder.

INTEREST:

(a) Beginning from the date hereof through the month in which the Phase II Completion Date (as
defined in the Loan Agreement, which, in turn, is defined below) occurs, interest shall accrue on
the unpaid outstanding principal balance of this Construction Loan Note at a floating rate per
annum equal to the sum of LIBOR and a margin of one and one-quarter percent (1.25/0). “LIBOR” is
the rate per annum for United States dollar deposits quoted by the Bank as the Inter-Bank Market
Offered Rate, rounded upward if necessary to the nearest whole 1/8th of 1%, with the
understanding that such rate is quoted for the purpose of calculating effective rates of interest
for loans making reference thereto. Borrower understands and agrees that the Bank may base its
quotation of the Inter-Bank Market Offered Rate upon such offers or other market indicators of
the Inter-Bank Market as the Bank in its discretion deems appropriate including, but not limited
to, the rate offered for U.S. dollar deposits on the London Inter-Bank Market.

With respect to each LIBOR designation hereunder, the Bank is hereby authorized to note the date,
principal amount, and interest rate applicable thereto and any payments made thereon on the
Bank’s books and records (either manually or by electronic entry) and/or on any schedule attached
to this Construction Loan Note, which notations shall be prima facie evidence of the accuracy of
the information noted. If the Board of Governors of the Federal Reserve System (or any successor)
prescribes a reserve percentage (the “Reserve Percentage”) for “Eurocurrency Liabilities” (as
defined in Regulation D of the Federal Reserve Board, as amended), then the above definition of
LIBOR shall be the “Base LIBOR”, and “LIBOR” shall mean: Base LIBOR divided by (100% minus LIBOR
Reserve Percentage). “LIBOR Reserve Percentage” means the Reserve Percentage adjusted by the Bank
for expected changes in such reserve percentage.

If the Bank at any time shall determine that for any reason LIBOR cannot be adequately
ascertained, or that the Bank can no longer offer LIBOR for legal reasons, then the Bank may
replace the Index with the daily floating Prime Rate and accrue interest on this Construction
Loan Note at the Prime Rate plus the Margin (adjusting each time the Prime Rate changes), and
the Borrower shall pay to the Bank

immediately upon demand such amounts as may be necessary to compensate the Bank for any
fines, fees, charges, penalties or other costs incurred or payable by the Bank as a result
thereof and which are attributable to such LIBOR-based rates. Similarly, if any tax, reserve,
special deposit, compulsory loan or similar requirement or condition is imposed upon the Bank for
making LIBOR-based rates available, then the Borrower shall pay to the Bank immediately upon
demand such amounts as may be necessary to compensate the Bank for any additional costs incurred
and/or reductions in amounts received by the Bank that are attributable to such LIBOR-based
rates.

(b) Beginning on the first day of the month following the month in which the Phase
II Completion Date occurs, interest shall accrue on the unpaid outstanding principal balance of
this Construction Loan Note at a fixed rate per annum of six percent (6.00%).

(c) From and including the date of an Event of Default (as defined in the Loan
Agreement) and so long as an Event of Default is outstanding, the unpaid principal balance
shall interest at the annual rate of four percent (4.0%) in excess of the rate that would
otherwise be in effect under this Construction Loan Note.

REPAYMENT TERMS: Principal and interest on this Construction Loan Note shall be due and payable
as follows:

(a) Beginning October 1, 2005, and continuing on the first day of every month
thereafter through the first day of the month following the month in which the Phase II
Completion Date occurs, monthly installments of accrued interest only;

(b) Beginning on the first day of the second month following the month in which the
Phase II Completion Date occurs and continuing on the first day of every month thereafter,
monthly installments of accrued interest (from the first day of the previous month through the
last day of the previous month) PLUS principal in accordance with Schedule I attached hereto;
and

(c) The entire outstanding principal balance and unpaid accrued interest shall be due
and payable in full on September 1, 2020 (the “Maturity Date”).

LATE FEE: Each time that a payment is not paid within five (5) days of its scheduled due date,
the Borrower shall pay the Bank, on demand, a late fee of five percent (5.0%) of the past-due
payment. The Bank’s assessment or acceptance of payment of a late fee shall not constitute a
waiver of any default or a waiver of the Bank’s right to accelerate or demand payment of this
Construction Loan Note.

PREPAYMENT TERMS: Principal may prepay principal in whole or in part at any time, without
premium or penalty.

ADDITIONAL TERMS AND CONDITIONS: This Construction Loan Note is issued under that Construction -
Term Loan Agreement of even date herewith between the Bank and the Borrower (the “Loan
Agreement”). The terms and conditions of the Loan Agreement are’ incorporated herein by
reference. This Construction Loan Note is subject to that certain Interest Rate Swap Agreement
dated of even date herewith (the “Swap Agreement”). The terms and Conditions of the Swap
Agreement are incorporated herein by reference. The Borrower shall pay all costs of collection,
including reasonable attorneys’ fees and legal expenses incurred by the Bank, whether or not suit
is commenced. This Construction Loan Note shall be governed by the substantive laws of the State
of Minnesota.

WAIVER OF PRESENTMENT AND NOTICE OF DISHONOR: Borrower and any other person who signs,
guarantees or endorses this Construction Loan Note, to the extent allowed by law, hereby waives
presentment, demand for payment, notice of dishonor, protest, and any notice relating to the
acceleration of the maturity of this Construction Loan Note.

STINGRAY PROPERTIES, LLC,

a Minnesota limited liability company

	 	 	 
	By: /s/ Gary Verkinnes

	Name:

	 	Gary Verkinnes

Title: Vice President

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