MedEquities Makes Major Investment In Houston Hospital
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Nashville-based MedEquities Realty Trust made a $12.5M investment in Advanced Diagnostics Hospital East, an acute care surgical hospital in Houston. Beginning in October, MedEquities will have the option to purchase the hospital for $12.5M according to the terms of a 15-year triple-net lease at an initial annual lease rate of 9.6%, with annual escalators.
During the term of the lease, MedEquities will also have the option to fund any new medical facility development involving the hospital or its management team.
Advanced Diagnostics Hospital East is a general acute care hospital. Primary service offerings include multi-specialty surgeries, focusing on in-network cases. Operating in the East Houston market, the hospital campus consists of about 1.6 acres and 23k SF with four operating rooms, two special procedure rooms, four inpatient rooms and four full-size extended recovery rooms.