Ventas Buys Palm Beach County Hospital for $37M

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Ventas traded an assisted living community for a hospital in South Florida’s Palm Beach County, likely part of a larger $189 million purchase. 

The health care REIT paid $37.2 million for Kindred Hospital The Palm Beaches, which specializes in long-term acute care, property records show. The 70,660-square-foot property is at 5555 West Blue Heron Boulevard, facing Bee Line Highway, near the Winding Waters Natural Area nature preserve in Riviera Beach. 

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The seller, private health provider Kindred Healthcare, completed the medical facility in 2008, a year after buying the 4-acre site for $3.6 million, per records. Three years ago, LifePoint Health acquired Louisville, Ky.-based Kindred Healthcare and formed a new entity called ScionHealth

The Riviera Beach transaction is likely part of a larger purchase. Last week, Ventas announced that it had purchased five Kindred hospitals for a combined $189 million. 

The deal included agreements for Kindred to lease back the properties, which Ventas anticipates will generate $16 million in annual rent payments. The Riviera Beach lease is scheduled to mature in 2034, according to filings to Palm Beach County. The deal includes two five-year extension options, and Kindred will continue operating the property.

Ventas also agreed to extend the leases of 23 Kindred long-term acute care hospitals by five years, starting next year. The extension is expected to trigger $80 million in annual rent payments, a figure that will increase 2.75 percent each year. 

The purchase comes less than a month after Chicago-based Ventas sold a 366,036-square-foot assisted living facility in Lake Worth, Fla., for $64 million. 

Representatives for Ventas and Kindred did not immediately respond to a request for comment. 

Julia Echikson can be reached at jechikson@commercialobserver.com