The Sanders Trust Acquires Five Dialysis Centers, Recognizing Community Health Needs
Friday, February 04, 2011 - admin
BIRMINGHAM, Ala. –The Sanders Trust (TST), one of the nation's leading medical real estate investment companies, today announced the acquisition of five kidney dialysis centers in Alabama and the Gulf Region. Valued at approximately $11 million, the five properties are each net-leased to Fresenius Medical Care.
The acquisition enhances TST's core investment strategy and underscores the need to offer safe and convenient dialysis care throughout the Southeast, where there is increased prevalence of diabetes, a risk factor for kidney disease. Four of the five properties are located in Alabama: Mobile, Fairhope, Foley and Winfield. The other center is in DeFuniak Springs, Florida; Nephrologists say the need for dialysis in these areas is great and will continue to rise.
For TST, the acquisition provides a further diversification of the company's portfolio which today is heavily concentrated in medical office buildings. Steve Hewett, Senior Vice President of the company said, “Our organization is now actively pursuing the acquisition and development of Inpatient Rehabilitation Hospitals (IRFs), long-term acute care hospitals (LTACs) in addition to traditional medical office buildings, all of which are essential components of the future healthcare delivery system.”
All five of the dialysis-center leases are on a triple net basis and have an average remaining lease term of roughly 13 years. The average age of the buildings is two years.
Alabama is one of only 13 states with a Certificate of Need Review Board. Any new dialysis centers must be approved by the CON board; these previously approved TST properties face limited competition because the CON board has deemed them of great service to the community.
With its headquarters in Birmingham, Ala., The Sanders Trust (http://www.sanderstrust.com/) has been a recognized leader in the investment community for healthcare clients since its inception in 1989 and has developed or acquired more than 48 medical properties in 14 states, totaling almost $500 million in value. The company's investment strategy has been affirmed by a recent article in National Real Estate Investor Magazine, which characterized healthcare real estate as the new “recession proof” property type.
Fresenius Medical Care (NYSE:FMS) is the largest provider of kidney dialysis services in the world and has an estimated U.S. market share in excess of 30 percent.
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