- Vibra Rehabilitation Hospital of Rancho Mirage (“Vibra Rehab”), which is located in Rancho Mirage, California, was acquired by CVMC REIT II on March 1, 2016, for a purchase price of $9,466,287. Vibra Rehab is under construction to become a 40,688 square foot, 50-bed inpatient rehabilitation hospital. Construction costs are budgeted at approximately $27.6 million to be funded by CVMC REIT II, for a total acquisition cost of $37,093,787. The facility is 100% net leased to Vibra Rehabilitation Hospital of Rancho, LLC, (the “tenant”) for a 16-year term beginning 30 days from the earlier of certificate of occupancy or September 15, 2017. Construction is expected to be completed in the summer of 2017, and once opened, the facility will offer inpatient rehabilitation services. The lease is guaranteed by the tenant’s ultimate parent company, Vibra Healthcare, LLC, and its affiliate Vibra Healthcare II, LLC (collectively, “Vibra”). Vibra is a national specialty healthcare provider founded in 2004, and currently operates more than 40 specialty acute care hospitals and outpatient physical therapy centers with more than 2,000 beds.
- Tennessee Data Center was acquired by CVMC REIT II on March 31, 2016 for a purchase price of approximately $19,400,000. The Tennessee Data Center, which is under construction to become a Tier III colocation data center, was purchased as a cold dark shell totaling 71,726 rentable square feet on 8.26 acres of land in Franklin, Tennessee. The Tennessee Data Center is currently 100% triple-net leased to Peak 10 Rentech, LLC, (“Peak 10, Inc.”) for a 15-year term beginning on the earlier of July 27, 2016 or on the date in which business operations commence. Peak 10, Inc. provides reliable, tailored cloud computing services, data center services and managed services. Phase I and II tenant improvements are estimated to be completed by July 2016 and will include approximately 25,000 square feet of whitespace supported by two generators at an estimated 2.5MW each and four 750 KW Toshiba UPS modules.
“Our experienced team sourced and executed these complex transactions, which we believe create unique opportunities for CVMC REIT II as well as the tenants involved. These acquisitions should complement the value of our existing portfolio, while we expect our ability to provide construction capital to the tenants helps them improve their services to customers and patients. We believe this is a win-win for everyone,” said Michael A. Seton, President of CVMC REIT II.
“We are excited to have successfully completed the acquisitions with Vibra and Peak 10, Inc. Investments such as these with high-quality tenants demonstrate our commitment to building a strong and diversified portfolio that we believe will create value for stockholders,” said John E. Carter, Chairman and Chief Executive Officer of CVMC REIT II.
About Carter Validus Mission Critical REIT II, Inc.:
Carter Validus Mission Critical REIT II, Inc. is a public, non-traded company headquartered in Tampa, Florida that has elected to be taxed, and believes it qualifies, as a real estate investment trust. The Company intends to acquire mission critical real estate assets located throughout the United States and abroad. Mission critical real estate assets are purpose-built facilities designed to support the most essential operations of tenants. Carter Validus Mission Critical REIT II, Inc. intends to focus its acquisitions on mission critical assets in the data center and healthcare sectors. Seewww.cvmissioncriticalreitii.com for more information.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. The Company undertakes no obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in the Company’s expectations.
Stacy Sheedy, 813-316-4292
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.