Physicians and Healthcare Systems That Provide Essential Services
We seek relationships with forward-thinking physicians and healthcare systems that provide mission-critical services in high demand. Our facilities are well aligned with the trends in healthcare delivery, especially those that deliver age-related procedures, and our long-term, triple-net leases ensure consistent returns to our shareholders.
Encompass Health
Encompass Health (Moody’s Ba3 / S&P BB-) is one of the leading providers of integrated healthcare services in the United States. Encompass operates at four of our properties in three states with more than 254,000 rentable square feet. These multiple touchpoints help to strengthen our relationship. Shifting demographic trends will continue to boost demand for the services that Encompass provides. Approximately one in three patients in the country receiving inpatient rehabilitative care receives it through Encompass’s network of 135 hospitals across 38 states.
Aquisition Date
- Altoona, PA: 12/20/16
- Mesa, AZ: 12/20/16
- Mechanicsburg, PA: 12/20/16
- Las Vegas, NV: 4/15/19
Purchase Price
- Altoona, PA: $21.550mm
- Mesa, AZ: $22.350mm
- Mechanicsburg, PA: $24.198mm
- Las Vegas, NV: $21.500mm
Mercy Rehabilitation Hospital
With more than 40 hospitals and 900 physician practices, Mercy (Moody’s Aa3) is one of the top 20 largest health systems in the United States. We acquired this property on April 15, 2019 for $28mm. In addition to the overall size of the health system, Mercy was ranked in the top 5 for large health systems for four years in a row by IBM’s Watson Health. Mercy has outperformed its peers in the following ways:
- Saved more lives and caused fewer patient complications
- Lower cost of care
- Readmitted patients less frequently
- Shorter wait times in emergency departments
- Shorter hospital stays
- Better patient safety
- Higher patient satisfaction
Belpre Memorial Health
Memorial Health System (Fitch BB-) is a not-for-profit integrated health system anchored by 154-bed Marietta Memorial Hospital, with more than 500 physicians across 64 locations representing 40 specialties. Memorial Health is the tenant at four GMRE buildings on the Belpre Medical Campus spanning more than 155,600 square feet. We acquired this asset on April 19, 2018 for $64.2mm. Memorial Health’s Belpre Medical Campus offers a wide range of outpatient services that provide flexibility to adapt to changing trends in healthcare delivery. Plus, the Belpre Medical Campus is expected to benefit from an aging demographic trend in a market that already has an outsized population age 65 and older relative to the national average.
