Hospital leases clinics following property sales
The sale earlier this month of two CHI St. Vincent Hot Springs properties is a continuation of its parent company’s effort to reduce its real estate portfolio, a Catholic Health Initiatives spokesman confirmed Thursday.
The Colorado-based nonprofit health system sold the Hot Springs branch of CHI St. Vincent Heart Clinic Arkansas and its local oncology clinic to Physicians Realty Trust, a Milwaukee-based real estate investment trust specializing in health care properties.
The company purchased the Highway 7 north property last year where CHI St. Vincent Hot Springs operates a convenient care clinic. As with that property, the hospital will now lease
the heart and oncology clinics from Physicians Realty, Aaron Sadler of Ghidotti Communications said.
Physicians realty purchased the heart clinic and oncology clinic properties for $12,382,336 and $5,670,861, respectively, according to deeds filed earlier this month with the Garland County circuit clerk’s office. The hospital has 49-year leases with three consecutive 10-year renewal options on the properties.
After the sale of the convenient care clinic last year for $3.65 million, CHI St. Vincent Hot Springs President Anthony Houston said CHI wanted to focus on providing care rather than owning property.
“(The sale) was just part of a national initiative CHI undertook across all markets to look at where we are from a real estate standpoint,” he said. “We’re not a real estate company. We’ll health care.”
The hospital said last year’s sale of the former Health-Park Hospital at its South Campus was not part of the real estate evaluation plan. It was sold to HealthSouth Corp. for $5 million as part of a joint venture with the Alabama-based chain to turn the 62,321-square-foot space into a rehabilitation hospital. stick with