Carter Validus Mission Critical REIT, Inc. ("CVMC REIT") announced that it acquired Walnut Hill Medical Center ("Walnut Hill") in Dallas, TX for $99.4 million and Cypress Pointe Surgical Hospital ("Cypress Pointe") in Hammond, LA for approximately $25 million. With these acquisitions, CVMC REIT's portfolio of mission critical real estate assets now exceeds $1.1 billion, consisting of 3.4 million rentable square feet in properties located in 17 states. Below is an overview of the portfolio as of 3/31/2014:
- Total investments increased to $1.11B
- Data centers: $608.4M
- Health care: $505.9M
- Total occupancy is 100%
Walnut Hill is a multi-specialty acute care hospital totaling approximately 199,000 square feet, including 84 in-patient beds, 16 ICU beds and six operating rooms. The hospital services include emergency and urgent care, diagnostic imaging, surgery, cardiology, and general acute care. CVMC REIT was instrumental during the development phase of the property by investing in a preferred equity loan to the developer, Medistar Corporation ("Medistar"), in 2012. In conjunction with this loan, CVMC REIT entered into a purchase and sale agreement to acquire the property upon completion.
"We are excited about purchasing this new state-of-the art hospital, as we believe this hospital truly represents where technology meets healthcare," said Michael Seton, president and chief investment officer, Carter Validus Advisors, LLC. "Medistar, under the vision and leadership of Monzer Hourani, successfully developed this outstanding hospital where practicing physicians can deliver the highest quality healthcare in a dynamic, rapidly growing market. Medistar has been a wonderful strategic partner for CVMC REIT and we look forward to continuing our partnership."
Cypress Pointe is a 30-bed surgical and specialty hospital measuring approximately 63,000 square feet in net rentable area. The facility includes six ICU rooms, six fully digital operating rooms, two procedure rooms, an open design MRI, a diagnostic lab, and a full service pharmacy. The hospital facility and operations are run by a 25-member physician ownership group with a diverse range of practice specialties including cardiology, general surgery, orthopedics, plastic surgery, and neurology providing strong physician alignment to the property.
"Cypress Pointe is the provider of choice in the area with a 99% satisfaction rating!" says John Carter, CEO of Carter Validus Mission Critical REIT. "We are pleased to align ourselves with such a high-quality, well-regarded health care organization as we continue to grow our portfolio of mission critical assets."