American Realty Capital Healthcare Trust, a Maryland corporation with headquarters in New York, has entered into contracts to purchase two healthcare properties in Texas and another in Wisconsin for a total price of $46.5 million.
ARC Healthcare Trust contracts for three properties
According to its prospectus (PDF), the company was created Aug. 23 for the purpose of acquiring a portfolio of real-estate properties with a focus on medical office buildings, hospitals, assisted living facilities and skilled nursing facilities. On Feb. 18, it began an initial public offering in which it sought to raise $1.5 billion by selling 150 million shares of common stock at $10 per share. According to a filing with the U.S. Securities and Exchange Commission, as of May 12 it has raised more than $2 million and had issued almost 213,000 shares of common stock.
The most expensive of the properties is the Reliant Rehabilitation Hospital Mid-Cities which opened last Oct. 12 in Bedford, Texas. American Realty Trust is acquiring the 60-bed facility for $32.3 million, according to the SEC filing. The filing states that the building's tenant is Reliant Healthcare Partners and the owner is Bedford Hospital Partners.
Reliant is operating as a joint venture between Nautic Partners, a private-equity firm and a physician group with a 74%-26% ownership stake, according to the filing. It also stated that 60% of the purchase will be funded through the public offering and the rest with a mortgage loan. The deal is expected to close in September. The lease with Reliant is set for 20 years and was initially set at $2.7 million annually, with an increase scheduled for Oct. 24, according to the filing.
ARC Healthcare Trust has entered into an agreement to buy a clinical outpatient building currently under construction in Monona, Wis., for $9.3 million from its builder, Yahara Creek. It is expected to be finished in September, and its 32,000 square feet of leasable space will be rented entirely by the University of Wisconsin Medical Foundation for $675,000 a year. Half of the purchase price will be funded through the initial stock offering and the rest through a mortgage loan, according to the filing.
It has also entered into a deal to buy Texarkana (Texas) Surgery Center for $4.5 million. The four-operating room facility is a 17,500-square-foot ambulatory surgery center operated by Nashville-based Symbion Healthcare and is leased through April 2021 and is used by some 50 physicians, including 23 who are investors with Symbion. According to the SEC filing, ownership of the facility is split 58%-42% between Symbion and the doctors. The initial lease will be around $393,000 annually, the filing said.
The deal is expected to close in June and the sale will be financed completely by proceeds from the public offering, according to the SEC filing.
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