MedEquities Realty Trust Makes $12.5 Million Investment In Acute Care Surgical Hospital In Houston


 MedEquities Realty Trust, Inc. (MRT) announced it has made a $12.5 million investment in an acute care surgical hospital in Houston, Texas. The investment is in the form of a newly originated interest-only loan with an interest rate of 9.6% and secured by a first mortgage on Advanced Diagnostics Hospital East.

Beginning on October 1, 2017, MedEquities will have the exclusive option to purchase the hospital for $12.5 million pursuant to a 15-year triple-net lease at an initial annual lease rate of 9.6% with annual escalators. During the term of the lease, MedEquities will have the right of first refusal to acquire and/or the option to fund any new medical facility development involving the hospital or its management team. The interest-only loan matures on February 1, 2018, with automatic extensions until September 30, 2019 if MedEquities does not exercise its purchase option prior to maturity.         

John McRoberts, Chief Executive Officer and Chairman of MedEquities, noted, "Advanced Diagnostics Hospital is primarily a short-stay and outpatient surgical hospital focusing on the thriving East Houston and Port of Houston markets. This investment is an attractive addition to our portfolio, and we are looking forward to potential future transactions with the company in other markets as they expand."

Advanced Diagnostics Hospital East is a licensed general acute care hospital that has met the requirements to receive the Gold Seal of Approval from The Joint Commission. Primary service offerings include multi-specialty surgeries with a strategy focused on in-network cases. Operating in the East Houston market, the hospital campus consists of approximately 1.6 acres and 23,300 square feet with four operating rooms, two special procedure rooms, four inpatient rooms and four full-size extended recovery rooms.

 For more information, please visit www.medequities.com.

 

 



February 14, 2017


Topic Area: Press Release


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