BETHESDA, Md.--(BUSINESS WIRE)--Global Medical REIT Inc. (NYSE:GMRE) is a Maryland corporation engaged primarily in the acquisition of licensed, state-of-the-art, purpose-built healthcare facilities and the leasing of these facilities to leading clinical operators with dominant market share. In keeping with the practice of announcing the signing of purchase agreements that are materially significant to its portfolio, the Company announced today that on May 17, 2017 it entered into a purchase contract to acquire from SDB Partners, LLC the Carrus Specialty Hospital and the Carrus Rehabilitation Hospital with 81,352 combined square feet for an aggregate purchase price of $26 million. The Carrus Specialty Hospital is a physician owned post-acute care facility and the Carrus Rehabilitation Hospital is an inpatient rehabilitation facility, both located in Sherman, Texas. Additionally, the Company has agreed to provide in the future, subject to certain conditions, (i) a tenant improvement allowance of $2 million and (ii) up to $5 million for the purpose of expanding the Facility. The acquisition is expected to close no later than July of 2017 and the Company expects to fund this acquisition using borrowings from its revolving credit facility.
The Facility is currently leased by the Seller to two affiliated tenants, Texoma Hospital Partners, LLC and Carrus Rehabilitation Hospital, LLC, the operators of the respective hospitals. Upon the closing of the acquisition, the Company, through a wholly-owned subsidiary of its operating partnership, intends to enter into a new, 20-year triple net lease with the Seller, as tenant, who then intends to enter into two separate subleases with THP and Carrus Rehab. The initial rent for the Facility in accordance with the terms of the Lease will be based on a capitalization rate of 8.8%. Carrus Healthcare, LLC, a Texas limited liability company, THP and Carrus Rehab intend to serve as guarantors of the Lease on a joint and several basis.
David Young, the Company’s Chief Executive Officer, stated, “As I discussed during our recent Q1 earnings call, we have been working on a number of acquisition opportunities that we were eager to provide details about to our investors. One of those opportunities, the acquisition of the Carrus Specialty Hospital and the Carrus Rehabilitation Hospital will be a great addition to our portfolio when the deal closes, with very healthy rent coverage and an attractive cap rate. We look forward to advancing more opportunities within our pipeline into the executed contract stage over the coming weeks.”
About Global Medical REIT Inc.
Global Medical REIT Inc. is a Maryland corporation engaged primarily in the acquisition of licensed, state-of-the-art, purpose-built healthcare facilities and the leasing of these facilities to leading clinical operators with dominant market share. The Company intends to produce increasing, reliable rental revenue by expanding its portfolio, and leasing each of its healthcare facilities to a single market-leading operator under a long-term triple-net lease. The Company’s management team has significant healthcare, real estate and public real estate investment trust, or REIT, experience and has long-established relationships with a wide range of healthcare providers.
