Global Medical REIT Pays $41 to Enter Austin Healthcare Market
The 59,000-square-foot, 50-bed facility is currently leased to a joint venture between subsidiaries of Kindred Healthcare and Seton Healthcare.
By Anca Gagiuc
Maryland-based Global Medical REIT completed the acquisition of the Central Texas Rehabilitation Hospital in Austin, Texas, for roughly $40.6 million. Following the transaction, the company will assume the seller’s interest as lessor.
The 59,000-square-foot facility is located at 700 West 45th St. The inpatient hospital features 50 beds and is leased to CTRH, a joint venture between subsidiaries of Kindred Healthcare and Seton Healthcare.
The lease on the healthcare facility is an absolute triple-net lease with roughly 10 years remaining. The arrangement is subject to four-, five-year renewal options by the tenant. The current annual rent is approximately $2.9 million, subject to annual increases of approximately 3 percent. In addition, 80 percent of the lease payments are guaranteed by Kindred Healthcare.
“We are excited to enter into the growing Austin, Texas, market and continue our partnerships with strong healthcare operators such as Kindred Healthcare and Seton Healthcare,” Jeffrey Busch, CEO of Global Medical REIT, said in prepared remarks.
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