The Sanders Trust (TST), a healthcare real estate development company located in Birmingham, Alabama, US, has acquired New England and Braintree Rehabilitation Hospitals for $90m.
TST acquired the hospitals in a joint venture with capital partner Harrison Street Real Estate Capital of Chicago from Senior Housing Properties Trust on 31 December 2013.
New England has 198 beds, while Braintree has 166. The hospitals are also affiliated with several other in-patient and out-patient locations in eastern Massachusetts. They average more than 5,000 discharges annually.
In addition to this acquisition, TST has entered into new, 15-year, absolute net leases with Reliant Hospital Partners (Reliant), a company based in Richardson, Texas, that currently operates nine other inpatient rehabilitation hospitals in Texas and Ohio.
The Sanders Trust CEO Rance Sanders said the organisation appreciates the confidence that Reliant’s management team placed in it to make the acquisition a reality.
"The New England and Braintree Rehabilitation Hospitals are nationally recognised facilities delivering quality care programmes and represent nearly two-thirds market share for rehabilitation services in the Boston metro area," Sanders added.
"It is a rare opportunity to acquire assets with such strong programmes in place, and TST and Reliant look forward to making these programmes even stronger in the future."
TST senior vice president Steve Hewett said the transaction required a great deal of work and cooperation from numerous parties.
"The Jones Lang LaSalle team in Boston, headed by Mindy Berman, deserves special credit for their real estate and financial advisory services. Likewise, the TST team extends thanks to our Birmingham, Ala. banking partners – Regions Bank as Agent, Iberia Bank and Cadence Bank – as well as Boston’s Customers Bank," Hewett added.
The Sanders Trust develops and acquires medical office buildings, inpatient rehabilitation hospitals and ambulatory surgery centres across the US.