Sila Realty Trust, Inc. Acquires Escondido Inpatient Rehabilitation Facility from Harrison Street for $63.4 Million
Tuesday, August 09, 2022
Sila Realty Trust, Inc., a public, non-traded real estate investment trust focused on investing in high quality healthcare properties across the continuum of care, today announced the acquisition of an inpatient rehabilitation facility located in Escondido, California (the “Escondido IRF”) from Harrison Street, one of the leading investment management firms focused on alternative real estate assets, for $63.4 million. A joint venture between Harrison Street and Pacific Medical Buildings (“PMB”) developed the property.
The Escondido IRF, known locally as the Palomar Health Rehabilitation Institute, is a two-story, build-to-suit, freestanding inpatient rehabilitation hospital located on 4.1 acres in the San Diego-Carlsbad MSA. The building has 56,000 rentable square feet and 52 beds and is fully leased to Palomar Health Rehabilitation Institute, a joint venture between Palomar Health (“Palomar”) and Kindred Rehabilitation Services (“Kindred”). The newly constructed facility began accepting patients in April 2021 and offers customized rehabilitation designed to the individual needs of people recovering from stroke, brain injury, neurological conditions, trauma, spinal cord injury, amputation, and orthopedic injury.
Kindred, a business unit of LifePoint Health, is a partner of choice for many leading hospital systems in the creation of joint venture rehabilitation operations. Kindred currently has 30 standalone inpatient rehabilitation facilities across 18 states.
“We are delighted to expand our footprint in the southern California market with the acquisition of the Escondido IRF. Since its opening last year, this highly advanced facility has been providing increased access to rehabilitation services for the people living in the Southern California region,” commented Michael A. Seton, President and Chief Executive Officer of Sila Realty Trust, Inc. “The Escondido IRF exhibits the attributes and local market affiliations that exemplify our strategy of acquiring high-quality healthcare facilities and creating a strong portfolio built for long-term success.”
Ben Mohns, Senior Managing Director and Head of North American Asset Management at Harrison Street, stated, “Harrison Street is pleased with the successful sale of this transaction to Sila Realty Trust, which demonstrates Harrison Street’s execution ability, and expertise investing in high-quality healthcare assets in attractive markets to generate value for our investors and partners. We look forward to continuing to identify exciting opportunities within our core sectors of focus in markets backed by favorable demographic characteristics consistent with our long-term strategy.”