The Offering
- Offering Price: Best Offer
- Total Number of Buildings: Five (5)
- Portfolio Size: 157,755 SF
- Total Beds: 190
- Average Remaining Initial Lease Term: 11-Years
- Occupancy: 100%
- Average Rent Coverage Ratio: 2.6x (1h 2015)
- In-Place NOI (As of February 1, 2016): $6,195,274
CBRE’s Healthcare Capital Markets Group is pleased to exclusively offer for purchase the Warm Springs Post Acute Medical Portfolio (the “Portfolio”) consisting of four long-term acute care hospitals (LTACHs) and one inpatient rehabilitation hospital (IRF) totaling 190 beds within proximity to numerous referring healthcare institutions.
Located in New Braunfels and Victoria, Texas and Covington and Hammond, Louisiana, the five building portfolio is 100% leased by Post Acute Medical™, one of the leading providers for patients with complex needs that require longer hospital stays and highly specialized care. Each lease features credit enhancements including corporate parent company guarantees and in one case, a letter of credit. Most of the leases feature unlimited inflation protection with CPI based annual escalators and a 2.0% floor, while four of the properties have cross default provisions in the lease. The average remaining lease term for the Portfolio is 11-years, with the earliest maturity occurring in 2025.
The Portfolio provides an incoming investor stability of income and exposure to the post-acute healthcare sector, one of the fastest growing segments of the healthcare industry.
Investment Highlights
- Preferred Asset Class
- Strong Operator with Dual Lease Guarantees
- Appealing Aging Trends
- Significant Remaining Lease Term
- Absolute NNN Leases
- Cost Effective Care
- The Future of Healthcare
CBRE U.S. Healthcare Capital Markets Group
Chris Bodnar
+1 303 628 1711
chris.bodnar@cbre.com
Lee Asher
+1 404 504 5965
lee.asher@cbre.com
CBRE Net Lease Property Group
Will Pike
+1 404 923 1381
will.pike@cbre.com
Texas Licensed Professional
Scott Herbold
+1 210 507 1120
TX License No. 525829
Louisiana Licensed Professional
Morgan Hillenmeyer
+1 615 248 5930
LA License No. 0995684713
CBRE Debt & Structured Finance
Greg Greene
+1 214 979 5617
greg.greene@cbre.com
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