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News Release: MedProperties, CBC and Candor form JV to develop new hospital in Wichita, Kan., suburb

The 31-bed, 89,500 square foot Rock Regional Hospital will help meet the need for an acute care hospital in the underserved communities and counties of southern Kansas

MedProperties Holdings, CBC Real Estate Group and national healthcare facility operator Candor Healthcare have formed a joint venture to develop and operate a 31-bed, full-service acute care hospital in Derby, Kan. The Rock Regional Hospital is expected to open in late 2018. (Rendering courtesy of MedProperties Holdings)

DERBY, Kan., and DALLAS, Sept. 27, 2017 – Many areas of the country have a dearth of healthcare options, forcing residents to travel long distances and sometimes visit smaller, outdated hospitals to receive needed medical services. That’s the challenge facing consumers in the Kansas counties of Sedgwick and Sumner and communities south and west of Wichita.

Now, however, residents will soon have access to a new 89,500 square foot, 31-bed, full-service acute care hospital in Derby, about 11 miles south of Wichita, thanks to MedProperties Holdings LLC, a national healthcare real estate private equity firm headquartered in Dallas. Joining the experienced team for this joint venture project are Kansas City, Mo.-based developer CarrBaierCrandall Real Estate Group (CBC) and national healthcare facility operator Candor Healthcare LLC, which is headquartered in Southlake, Texas.

The hospital, which is expected to be completed in late 2018, will be built near Rock Road and Patriot Avenue on a 15-acre parcel in the fast-growing Rock Regional retail corridor. It will be in a highly visible, accessible location near major transportation corridors, including the K-15 Intrastate. The site includes additional space to expand the hospital in the future, if needed, and two additional land parcels that are available to build other future healthcare facilities such as a possible medical office building and a freestanding inpatient rehabilitation hospital.

Michael Horowitz, MedProperties Managing Principal, says, “Residents in southern Kansas have been underserved in terms of healthcare for many years. Patients have had to travel to Wichita to visit a hospital or else to nearby towns with smaller, outdated hospitals. We’re proud to team up with CBC and Candor to help meet this important need.”

“CBC and Candor are the perfect partners for this new hospital project,” he adds. “Candor, which will be responsible for the professional management of all operations, has managed a wide range of healthcare facilities including acute care hospitals. CBC has extensive experience developing a diverse array of medical properties across the country, totaling in excess of five million square feet.”

MedProperties Managing Principal Darryl Freling says that the projected demand and positive outlook for the new hospital is driven by the financial investment and participation of the area’s dominant healthcare physician groups. This includes Family Med Centers, a 16-member primary care physician group based in Derby; Cardiovascular Consultants of Kansas, which is based in Wichita and covers a four-county area; and Mid-American Orthopedics, which is based in Wichita and has offices in Derby. In addition, Wichita Surgical Specialists, a 35-member general surgery group, and other general surgeons, have committed to bring patient cases to the new hospital.

The project also enjoys the support of the local community and residents. “The major primary care and medical specialty groups in the area have all made a significant financial investment in the hospital operating entity and real estate venture through ownership stakes,” says Mr. Freling. “This has truly been a community effort.”

Mr. Freling said that in addition to its conventional real estate underwriting, MedProperties and CBC worked with Dallas-based healthcare facility research firm VMG to conduct an extensive analysis of the feasibility of the new hospital and its potential operational success. He noted that there were positive conclusions in all aspects of the feasibility study.

Other development team partners include architect ACI Boland, which is based in Kansas City, Mo.; general contractor McCownGordon Construction, also of Kansas City; and engineer Renaissance Infrastructure Consulting of Riverside, Mo.

About MedProperties

MedProperties is a Dallas-based healthcare real estate private equity firm that invests on a direct and an indirect basis (through joint venture relationships) in the development of new, value-add, and stabilized healthcare real estate, including multitenant medical office buildings and single-tenant, specialty healthcare facilities. MedProperties invests through its discretionary funds and through stand-alone investment vehicles. MedProperties is dedicated solely to investments in healthcare real estate. For further information on MedProperties, please visit www.medpropertieslp.com.

About CBC

CBC Real Estate Group, LLC was formed for a single purpose: to deliver expertise and economic value across all segments of commercial real estate. Our team combines the “best of the best” in commercial real estate professionals from the region. We fully recognize that a significant amount of trust is levied upon CBC in each engagement. In honor of this trust we believe that the highest level of accountability and excellence in performance become the minimum expectation of our business partners. CBC’s distinctive approach is based upon a proprietary platform that allows our company to deliver unsurpassed results across a myriad of complex development ventures. For more information, please visit www.cbcrealestategroup.com.

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