Absolute Net Lease Healthcare Investment

372 Inverness Drive South, Englewood, CO

Market Price

Price

49,106 sqft

Building Size

3 acres

Lot Area

Gallery
Street
Map
Overview
Building Size
49,106 sqft
Lot Area
3 acres
Occupancy
100%
Year Built
2022
Floors
3
Parking Spots
98
Description

Quiver Investments (“Quiver”) and Cushman & Wakefield (“C&W”), as exclusive advisors, are pleased to offer for sale the fee simple interest in Reunion Inverness Rehabilitation Hospital (“Reunion Inverness” or the “Property”), a brand-new, state of the art inpatient rehabilitation hospital where cutting edge technology meets compassionate care. With its grand opening in March 2022, this operational and fully leased asset is now available for acquisition.

Conveniently located in the affluent Inverness / Denver Tech Center area of southeast Denver, the facility provides care for patients with debilitating illnesses and injuries from stroke, major multiple trauma and other complex neurological and orthopedic conditions. The 40-bed, three (3) story, custom-built inpatient rehabilitation facility (“IRF”) provides these patients with private rooms, two high tech therapy gyms, outdoor courtyard and therapy areas, large open corridors, on- site café, and spacious family meeting areas.

Designed by BSA LifeStructures, a leading national healthcare architecture firm, this is the 2nd location for Reunion Rehabilitation Hospitals in the metro Denver area. The other location (Reunion Hospital: Denver/Northfield) was recently acquired by AEW Capital management with over $100 billion of assets under management on behalf of Michigan State Pension Fund.

The current operator of the hospital is Nobis Rehabilitation Partners (www.nobisrehabpartners.com) who manages inpatient rehabilitation hospital across the United States, currently operating 24 hospital for multiple owners. The investment boasts an Absolute Net lease structure providing an investor a Year 1 Net Operating Income (“NOI”) of $2,634,385 (for the fiscal year ending 10/31/2024) with over 23 years of remaining lease term plus an additional (2) 5-year options to extend at continued 2.0% YOY increases.

Reunion Inverness is located in Denver’s Southeast Submarket which spans 3 counties (Douglas, Arapahoe, and Denver). This area has seen incredible growth with access to new housing throughout the region and outlying suburbs. Access to transportation is one of the major forces for growth in the Southeast Submarket. Interstate 25 bisects the Southeast region of Denver and is the city’s most heavily traveled arterial. The Regional Transportation District (RTD) offers bus and light rail services throughout the region as well. Light Rail tracks stretch to the southern edges of the Southeast Submarket and connects the region to the rest of the Denver MSA. The area is also home to the nation’s third busiest general aviation executive airport - Centennial Airport.

In addition, Denver’s Southeast Submarket has access to an abundance of retail, dining, and recreational amenities with several outdoor and indoor shopping malls, golf courses, and hotel options.

Highlights
  • New construction, state-of-the-art Class A Inpatient Rehabilitation Facility (IRF) located in the affluent southeast Denver submarket
  • 40 beds
  • Absolute net lease structure
  • Over 23 years of remaining lease term with 2.0% YOY escalations throughout
  • 215,000 residents within a 5-mile radius with an average household income of $146K
  • Fee simple, offered free and clear of debt
  • Corporate guaranty
  • Hospital operations are profitable with ever-increasing revenues since opening and 71% average occupancy for 2023 YTD (ending August 31, 2023) and setting record occupancy of 81% in August 2023
Location
Gallery