News Release: MedProperties Holdings invests in rehab hospital

MedProperties Holdings invests in rehab hospital
Dallas-based real estate private equity investment firm is joint venturing with Avail Healthcare Ventures and Trivant Healthcare to develop 40-bed hospital near Austin, Texas

MedProperties Holdings is serving as the primary equity source for a new rehabilitation hospital in Kyle, Texas, which will be 100 percent leased by a joint venture partnership of Post Acute Medical LLC and Seton Healthcare.
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AUSTIN and DALLAS, Texas, May 17, 2013 – A joint venture of three Texas-based companies – MedProperties Holdings LLC, Avail Healthcare Ventures and Trivant Healthcare – is investing in the development of a new 40-bed freestanding inpatient rehabilitation hospital in the community of Kyle, just south of Austin.
Avail and Trivant will jointly serve as the developer of the 54,400 square foot, two-story rehab hospital to be located on a 3-acre site at the intersection of Kyle Parkway and Seton Parkway next to Seton Medical Center Hays. The 307,000 square foot, 121-bed, acute-care medical center is the largest hospital serving Hays County, which the third-fastest growing county in Texas.

Seton Healthcare Family, along with Post Acute Medical LLC, have formed a joint venture to lease and operate the rehab hospital, to be called the Warm Springs Rehabilitation Hospital of Kyle.

“The investment was attractive to us for a number of reason, including the fact the tenant is a joint venture between Seton Healthcare Family, a premier hospital system, and Post Acute Medical, an experienced operator in the rehabilitation space which we believe will continue to gain favor and increasing demand arising out the re-admission penalties that will now be imposed on hospital systems for patient readmissions,” says MedProperties Managing Principal Darryl E. Freling. “Patients who are discharged from acute care hospitals and then enter post-acute rehab facilities are less likely to be readmitted.”

“We are pleased to once again partner with Post Acute Medical, which is a successful operator of a number of rehab hospitals including San Antonio-based Warm Springs Rehabilitation Hospital of Westover Hills, one of our other recent investments,” says MedProperties Managing Principal Roman J. Kupchynsky II. “We expect to continue working with these types of experienced partners, leveraging new real estate investment opportunities across the country, and serving as a reliable source of programmatic equity investment.”

“This is the second investment this year for MedProperties’ recently launched second investment fund, MedProperties Investment Partners LP, a $150 million discretionary fund,” adds Henry Horowitz, Managing Member of MedProperties’ Greenville, S.C., office. “With this fund, MedProperties will continue its strategy of investing in a diversified mix of multi-tenant medical office buildings and single tenant specialty healthcare facilities.”

Construction of the Kyle rehab hospital will begin within 60 days and is expected to be completed in 12 months. American National Bank of Texas is providing the construction and mini-perm financing.