DALLAS-Cornerstone Healthcare Plus REIT has acquired a 42-bed inpatient rehabilitation facility for $14.75 million in an all-cash transaction.
The Irvine, CA-based non-traded REIT bought the 40,000-square-foot property from local owner The Cirrus Group. The property is leased under a long-term triple-net lease to GlobalRehab LP, a physician-run rehabilitation operator, through February 2024 with two additional five year renewal options.
Built in 2008, the facility is located at 1340 Empire Central Dr., about 2.5 miles from UT Southwestern Medical Center and Parkland Memorial Hospital. The two large hospitals serve as the facility’s primary referral source.
The facility is GlobalRehab’s second inpatient rehabilitation facility and currently has roughly 30 physician partner-owners and more than 150 physicians on staff actively referring patients. These types of facilities treat patients that are recovering from significant injuries or are suffering from chronic conditions that have impaired their physical functioning.
“We believe good real estate is about finding tenants that provide good healthcare care delivery,” says John Mark Ramsey, CEO of Servant Healthcare Investments, which serves as the REIT’ strategic alliance partner and sub-advisor. The Orlando, FL-based company sources all transactions for the REIT including both development and acquisitions, serves as the single point of contact for sellers and provides asset management services, as well.
“We like the physician-owned model because we’re believers in physician-influenced care delivery,” Ramsey tells GlobeSt. “GlobalRehab’s results have been exceptional. They have good understanding of where healthcare delivery is going.”
Ramsey notes that over the next couple decades, healthcare providers will increasingly treat health conditions associated with aging, which will increase the demand for rehabilitative therapy.
Cornerstone Healthcare Plus REIT was launched by Irvine, CA-based Cornerstone Real Estate Fund in 2008. Since then, the REIT has completed eight transactions totaling $101.2 million, Ramsey says. In addition, it has two additional properties under contract totaling $26 million.
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