According to a joint venture of Dallas-based healthcare specialists, there is a shortage of behavioral healthcare facilities in greater Phoenix — and the team is aiming to develop space to meet the demand.
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MedProperties Holdings and Caddis formed a JV to develop a 67K SF, 90-bed hospital in Surprise. Destiny Springs Behavioral Health Hospital is slated for completion in the fall of 2018.
The build-to-suit facility, which will provide both inpatient and outpatient treatment for adolescents, adults and geriatric patients, will be on a six-acre site. Destiny Springs Healthcare LLC, founded by Phoenix-based physician Martin Newman, is pre-leasing 100% of the hospital for an initial 20-year term, with three five-year renewal options.
Newman served as the chief medical officer for Aurora Behavioral Health Systems, the largest privately owned behavioral health company in Arizona, before leaving to develop the Destiny Springs Healthcare hospital system.
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"The behavioral health industry has been underserved here for quite some time," MedProperties Managing Principal Michael Horowitz said. "Market studies have found a substantial unmet demand and undersupply of beds for adolescents, adults and geriatric patients. This imbalance is driving substantial growth opportunities for behavioral health providers.”
The tenant is partnering for the first time with Diamond Healthcare Corp., which will operate the hospital. Diamond is a specialist in operating behavioral health and addiction treatment facilities.
The development will be MedProperties’ seventh joint venture with Caddis and the 16th investment by the MedProperties Investment Partners Fund. Siemens Financial Services is arranging debt financing, including a construction loan and a mini-perm loan, for the Destiny Springs Behavioral Health Hospital.
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