American Realty Capital Healthcare Trust, Inc. recently announced that it has entered a contract to acquire 12 healthcare facilities for an aggregated $257.5 million purchase price.
The facilities include three rehabilitation hospitals, two ambulatory surgery center/medical offices, two hospital/medical office buildings, three post-acute care rehabilitation facilities, one long-term acute care hospital, and one medical office building, for a total of 765,038 square feet.
The acquisition will increase ARC Healthcare’s portfolio, which includes closed assets and those under contract, to 17 properties worth an aggregated $307.1 million. The majority of the portfolio is leased to 49 tenants, of which only 16% have lease expiration dates prior to Dec. 16, 2016, says the company; most of the tenants’ lease terms will not expire for more than 10 years from the projected closings.
“This is a great opportunity to purchase an institutional quality, diversified portfolio of healthcare facilities through a direct relationship with the seller,” Todd Jensen, Chief Investment Officer for ARC Healthcare, said in a statement. “The portfolio has predominantly long-term, triple-net leases with contractual annual rent increases across six different types of healthcare assets.”
Additionally, said Jensen, a majority of the facilities are located within the largest 25 cities, and this positions the portfolio to benefit from the demographic changes and growth in the over-65 population.
Written by Alyssa Gerace