Carter Validus Mission Critical REIT Acquires Hospital for $25 million

Carter Validus Mission Critical REIT, Inc. acquired a hospital last week located in Hammond, Louisiana. The non-traded REIT purchased Cypress Pointe Surgical Hospital for approximately $25 million. The 63,000 square foot hospital opened in 2010 and includes 6 ICU rooms and 24 inpatient rooms.

The hospital employs state-of-the-art technology and has six fully digital operating rooms. It is owned in part by physicians who have wide-ranging areas of expertise.

In connection with this acquisition, Carter Validus Operating Partnership (CVOP) entered into a joinder agreement and an assignment of leases and rents with KeyBank to add the Cypress Pointe Surgical Hospital to the collateral pool of the KeyBank Credit Facility. This increased the Company’s borrowing base availability under the Credit Facility by approximately $13,922,000.

Carter Validus Mission Critical REIT has a focus on acquiring assets that are “mission critical”, meaning the facilities are purpose-built and essential to the operations of high growth industries. One of its main goals is to provide stockholders with regular monthly distributions. At the end of 2013, the company had paid aggregate distributions of $26.4 million.

The REIT has an offering size of up to $1.5 billion and as of December 31, 2013 had raised approximately $727.3 million and had a portfolio of 32 properties, 28 of which are single-tenant commercial properties. The REIT is scheduled to close by June 6, 2014.