Sila Realty Trust, Inc. Acquires Escondido Inpatient Rehabilitation Facility from Harrison Street for $63.4 Million
A joint venture between Harrison Street and Pacific Medical Buildings (PMB) developed the property.
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.”
About Sila Realty Trust, Inc.
Sila Realty Trust, Inc. is a public, non-traded real estate investment trust headquartered in Tampa, Florida, that invests in high-quality healthcare properties leased to tenants capitalizing on critical and structural economic growth drivers. The Company is focused on investing in and managing strategic healthcare assets across the continuum of care, with emphasis on lower cost patient settings, which generate predictable, durable, and growing income streams. As of March 31, 2022, the company owned 126 operating healthcare properties located in 56 markets across the United States. For more information, please visit www.silarealtytrust.com.
About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with offices in London, Toronto, San Francisco and Washington D.C., the firm has more than 220-employees and approximately $50 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America. Harrison Street was awarded Best Places to Work by Pensions & Investments for seven consecutive years (2014-2020) and was recognized by PERE as the 2021 Alternatives Investor of the Year, North America and 2020 Global Alternatives Investor of the Year. For more information, please visit www.harrisonst.com.
About PMB
PMB is a purpose-driven healthcare real estate developer with a mission to improve healthcare delivery, effect change, and positively impact communities. The company is 100 percent focused on healthcare real estate across the continuum of care including behavioral health, life sciences, ambulatory care centers, medical office buildings, inpatient hospitals, post-acute hospitals, senior living facilities, and parking structures. PMB has developed over 115 facilities to date representing approximately 6 million square feet. The firm owns and manages 70 medical facilities comprising over 5.2 million square feet. For more information, please visit www.pmbllc.com.
Forward-Looking Statements
Certain statements contained herein, including those regarding Sila's strategy of acquiring high-quality healthcare facilities and Sila's creation of a strong portfolio built for long-term success, other than historical fact may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provided by the same. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties. No forward-looking statement is intended to, nor shall it, serve as a guarantee of future performance. You can identify the forward-looking statements by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results, strategic acquisitions and growth opportunities, and future distributions. Forward-looking statements are subject to various risks and uncertainties and factors that could cause actual results to differ materially from Sila's expectations, and you should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond Sila's control and could materially affect Sila's results of operations, financial condition, cash flows, performance or future achievements or events. Additional factors include the risk that the expected benefits for Sila’s pure-play healthcare REIT strategy are not achieved, and other factors, including those described under the section entitled Item 1A. "Risk Factors" of Part I of Sila's 2021 Annual Report on Form 10-K with the SEC a copy of which is available at www.sec.gov. Sila undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law
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