Skip to content
The DI Wire
Click Here to Subscribe to Our Free Daily News Updates

Carter Validus REIT Finds New Tenant for Texas Hospital After Previous Tenant’s Bankruptcy

Carter Validus Mission Critical REIT Inc., a publicly registered non-traded real estate investment trust, announced that an affiliate of the University of Texas Medical Branch plans to lease its Bay Area Regional Medical Center property in Webster, Texas after its sole tenant declared bankruptcy earlier this summer.

Carter Validus Mission Critical REIT Inc., a publicly registered non-traded real estate investment trust, plans to lease its Bay Area Regional Medical Center property in Webster, Texas to an affiliate of the University of Texas Medical Branch after its sole tenant declared bankruptcy earlier this summer.

The DI Wire reported in May that the Bay Area Regional Medical Center LLC, the sole tenant of the $200 million general acute care hospital that shares its namesake, decided to close its operations and file for bankruptcy due to “significant hurdles with managed-care [insurance] companies.”

“We are excited to be able to have the opportunity to be part of UTMB’s presence in the Webster, Texas market and look forward to a strong relationship with such a well-regarded and world class healthcare system,” said Michael Seton, chief executive officer and president of the REIT.

Carter Validus Mission Critical REIT purchased a 60 percent interest in the medical facility for nearly $119 million in late 2014 and committed an additional $35 million for a future build-out. The property’s developer, an affiliate of Medistar Corporation, retained the remaining 40 percent interest in the 370,000-square-foot property.

In other company news, the REIT recently sold Andover Data Center, the last data center asset in its portfolio, for $15 million.

Carter Validus Mission Critical REIT invests in net leased data center and healthcare assets and owns a $1 billion portfolio comprised of 63 healthcare properties. The offering was declared effective by the SEC in December 2010 and closed in June 2014 after raising more than $1.7 billion in investor equity, according to Summit Investment Research.

For more on the SC Distributors platform of products, visit their directory page here.