Non-traded REIT, Carter Validus Mission Critical REIT II (CVMC REIT II) announced yesterday that it has acquired its first property, a 13,645 square foot ambulatory surgery center known as Cy-Fair Surgery Center. The property was acquired for a purchase price of $4,450,000, plus closing costs, and was financed through proceeds from the REIT’s initial public offering and a credit agreement with Key Bank National Association.
Located in Houston, Texas, the facility sits on the Cypress Fairbank Hospital campus, an area that offers convenient access for patients, physicians, and nearby hospitals, which serve as a referral source for new patients.
Cy-Fair Surgery Center, LTD, the lessee, leases 100% of the facility, which was constructed in 1993.
The lessee is co-owned by 20 physicians and Nueterra Holdings, LLC, which has partnered with over 10,000 physicians and 25 health systems to find new ways of uniting the healthcare community while specializing in the development of equity partnerships with health systems, governments, hospitals, and physicians.
John Carter, CEO of CVMC REIT II commented, “We are thrilled to move forward with the purchase of our first property. The combination of strategic location, long-term triple-net lease and high quality tenant makes this an ideal first acquisition for our company and is consistent with our strategy of acquiring high quality, well located mission critical real estate.”
“Cy-Fair Surgery Center is designed to help physicians provide the highest level of care to their patients,” added Michael Seton, President and Chief Investment Officer of Carter Validus Advisors II, LLC. He continued, “We are pleased to align ourselves with such a well-regarded healthcare organization. This dedicated group of physicians has a demonstrated history of providing high quality, individualized, cost-effective healthcare. We are pleased to begin acquiring our portfolio of mission critical assets with high quality tenants like these.”
CVMC REIT II seeks to acquire a portfolio of real estate assets that are mission critical, which is defined as assets that are purpose-built and are designed to handle the essential needs of the tenant.
The REIT is offering up to $2,350,000,000 of shares of common stock, through its dealer manager, SC Distributors, LLC, which RCS Capital Corporation agreed to acquire through its purchase agreement with Validus Strategic Capital Partners.