Landlord sells Victory Medical Center building in Beaumont

photo by Kevin King

CNL Healthcare Properties, a real estate investment trust (REIT) focused on senior housing and healthcare facilities, has acquired a portfolio of two specialty hospitals and three inpatient rehabilitation hospitals for approximately $131.1 million — including Victory Medical Center in Beaumont.

“The developer that owned the building (that Victory is housed in) sold the building, nothing to do with the business or the hospital. We just have a new landlord,” clarified Victory Medical Center Chief Executive Officer Becky Ames. “We will just be renting from (CNL) instead of the original developer (Tom Pisula Development).”

The total acquisition spans four states, and the properties combined have approximately 297,110 square feet of rentable space.

“This addition to our medical portfolio gives us the opportunity to invest in two specialty hospitals and three inpatient rehabilitation hospitals that will diversify and add to our growing number of healthcare assets,” said Kevin Maddron, senior vice president of CNL Healthcare Properties. “The properties have highly qualified tenants in place that are focused on providing patients with the best possible treatment and care.”

The acquired properties include:

• The 86,128-square-foot specialty hospital and medical office building in Beaumont leased to Victory Medical Center Beaumont LP

• A 58,353-square-foot specialty hospital in Hurst, near Dallas, leased to Victory Medical Center Mid-Cities LP

• A 53,449-square-foot inpatient rehabilitation hospital in Oklahoma City, leased to Mercy Rehabilitation Hospital

• A 53,260-square-foot inpatient rehabilitation hospital in Las Vegas, Nevada, leased to Desert Canyon Rehabilitation Hospital

• A 45,920-square-foot inpatient rehabilitation hospital in Mishawaka, Indiana, near South Bend, leased to Saint Joseph Regional Medical Center - South Bend Campus Inc.

Lincoln Harris CSG and Holladay Properties Services Midwest Inc. will manage the hospitals on behalf of CNL Healthcare Properties.

“CNL is a huge, very well-respected real estate company that invests their dollars into healthcare facilities, hospitals, and senior living facilites,” Ames said. “I think it says a lot that they invested in Victory. They wouldn’t be investing their real estate dollars in something they didn’t think was a good and viable business. I think it’s kind of a seal of approval for us. They’ve been very accommodating to work with so far. We’re very excited about it.”

CNL Healthcare Properties Inc., is a real estate investment trust (REIT) that focuses on acquiring properties in the senior housing and healthcare sectors, both stabilized and development, as well as other income-producing properties, real-estate related securities and loans. CNL Financial Group, LLC is the sponsor of CNL Healthcare Properties. For more information, visit www.CNLHealthcareProperties.com. CNL Financial Group (CNL) is a leading private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $29 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit www.cnl.com.

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