Carter Validus Mission Critical REIT II, Inc. ("CVMC REIT II") announced the completion of acquisitions with an aggregate purchase price, including future commitments, of approximately $56.3 million* and a total of over 155,000* rentable sq ft:
CVMC REIT II purchased a 100% interest in a parcel of land in Las Vegas, on June 24, 2016, for $2,613,600 and will be funding the development of the Post Acute Las Vegas Rehabilitation Hospital ("PAM Rehab") for a total estimated acquisition cost of $24,052,600. PAM Rehab is currently under construction to become a two-story, 44-bed inpatient rehabilitation facility with approximately 56,220 rentable sq ft. The facility is 100% net leased for a 20-year term to PAM Squared at Las Vegas, LLC ("the tenant"), a wholly owned subsidiary of PAM Squared, LLC. The tenant will operate the facility when construction is complete, which is estimated to be August 2017. The tenant currently plans to offer inpatient rehabilitation services such as treatment for strokes, spinal cord injuries, brain injuries, and various other traumas. Post Acute Medical, LLC ("PAM") will provide a corporate, absolute guarantee of the lease. Carter Validus Advisors II, LLC has an established relationship with PAM resulting from seven prior acquisitions, including Post Acute Webster Rehabilitation Hospital and Heartland Rehabilitation Hospital. PAM was founded in 2006 and currently owns a network of 31 specialty and surgical hospitals in 12 states.
Somerset Data Center was acquired by CVMC REIT II on June 29, 2016 for a purchase price of $12,375,000. The Somerset Data Center is a two-story colocation data center consisting of 36,114 rentable sq ft on a 2.88-acre parcel in Somerset, New Jersey. The Somerset Data Center is currently 100% triple-net leased to Datapipe, Inc. ("Datapipe") for a 12.08-year term. The building was gut renovated in 2006, and significant improvements have been made to the property within the last year including a new roof, replacement of one of the remote terminal units, new stucco exterior insulation finishing system installation, reframed windows, a new security fence around the entire perimeter, a new elevator, an additional break room, and new bathrooms. Datapipe is the only global, managed IT and cloud service provider recognized as an industry leader by both Gartner, Inc., and Forrester Research, Inc.
- Integris Lakeside Women's Hospital ("Lakeside Hospital") was acquired by CVMC REIT II on June 30, 2016 for $19,840,000. Lakeside Hospital is a 23-bed, two-story 62,857-sq-ft specialty hospital constructed of steel and concrete with stone veneer accents situated on 4.93 acres in Oklahoma City, Oklahoma. The facility, 100% triple-net leased to Lakeside Women's Hospital, LLC ( "Lakeside"), provides a broad range of women's health services including obstetric, gynecological and urogynecological services, labor and delivery, breast surgery, colonoscopy, hormone replacement therapy, mammography, nursing, and bone density testing. Built in 1997 and renovated in 2008, Lakeside Hospital houses three operating rooms, a lab, a surgery center, an obstetrics center, an endoscopy unit, medical office suites, labor and delivery rooms, a nursery, and a level II neonatal intensive care unit.
"These acquisitions align very well with our investment strategy to acquire high-quality assets occupied by desirable tenants with long-term net leases. We are pleased to add these properties to our diverse portfolio of mission critical real estate," said Michael A. Seton, president of CVMC REIT II.
*Includes our intention to fund the construction of the 56,220-sq-ft Post Acute Las Vegas Rehab Hospital for approximately $21.5 million.