FOR IMMEDIATE RELEASE
Austin – April 30, 2025 – CBRE facilitated the sale of the Warm Springs Rehabilitation Hospital, a 54,500-square-foot post-acute care hospital located at 5980 Kyle Parkway in Kyle, Texas, on behalf of IRA Capital (“IRA”) and funds managed by Oaktree Capital Management, L.P. (“Oaktree”) on April 11, 2025.
Chris Bodnar, Brannan Knott, Mindy Berman, Zack Holderman, Cole Reethof, Jesse Greshin and Trent Jemmett of CBRE U.S. Healthcare Capital Markets partnered with Scott Carter of CBRE’s Houston Advisory and Transaction team to act as the exclusive advisors to the seller.
Originally constructed in 2014 as a built-to-suit for PAM Health, the property is fully leased to a joint venture between PAM Health and Ascension Healthcare (Fitch: AA+) on a long-term basis. The property is located across the street from Ascension Seton Hays campus, the first and only hospital operating as a Level II Trauma Center between Austin and San Antonio. Warm Springs Rehabilitation Hospital is the only freestanding, licensed rehabilitation hospital of its kind in Kyle, and offers 40 private rooms, pharmacy, lab and imaging services on-site, plus an indoor heated saltwater pool with the latest in rehabilitation technology.
“PAM Health does very well at this location given the lack of competing services in the market,” said Bodnar, CBRE’s Vice Chairman of the U.S. Healthcare Capital Markets practice. “The buyer will benefit from strong cash flow and attractive demographics as a result of rapid population growth in the area and Ascension Seton Hays’ expansion.”
The Warm Springs Rehabilitation Hospital is situated in Kyle, Texas, an affluent town located between Austin and San Antonio, approximately 20 minutes from downtown Austin. Kyle was the second fastest-growing city in the country (population 50,000+) at 9.1% according to the U.S. Census Bureau and an average household income of $105,417.
About IRA
Founded in 2010, IRA Capital is a Southern California-based private equity firm specializing in real estate investments. To date, the firm has acquired over 10 million square feet of property across 28 states, with a total capitalization exceeding $3.5 billion. IRA partners with pension funds, institutions, and family offices to invest in high-quality assets. To learn more, visit www.iracapital.com.
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $202 billion in assets under management as of December 31, 2024. The firm emphasizes an opportunistic, value-oriented, and risk-controlled approach to investments in credit, equity, and real estate. The firm has more than 1,200 employees and offices in 23 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
Contact:
Olivia Vallone
+1 847 691 9144
Olivia.Vallone@cbre.com
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