"Medical assets, such as rehabilitation hospitals, are generally perceived as stable investments because demand remains a constant in any economy."
ROB ANDERSON - president of BV SECURITIES
DALLAS – Bridgeview Real Estate Exchange, a Delaware Statutory Trust sponsor, has launched a $77 million DST offering for 1031 Exchange investors secured by a neuro-rehabilitation hospital in Sacramento, Calif., a property sector with investment stability that can withstand economic tides.
Medical assets, such as rehabilitation hospitals, are generally perceived as stable investments because demand remains a constant in any economy. The BV Ernest Health Neuro Rehab DST is a zero-debt offering backed by a 50-bed hospital at 10 Advantage Court, just north of the city center.
"The Sacramento Rehabilitation Hospital focuses on re-teaching daily living skills to neurological patients. Its multidisciplinary services are always in demand and not impacted by economic cycles," says Rob Anderson, president of Dallas-based BV Securities, Bridgeview's managing broker dealer and a member of FINRA.
THE PROPERTY
The hospital, which opened in January 2023, is well-positioned as the only in-patient neuro-rehab facility in northeast California, averaging 95% occupancy. Furthermore, the operator has overflow referral agreements with two major healthcare providers in the region to ensure maximum patient levels.
Sacramento Rehabilitation Hospital is one of 886 facilities nationwide. Its program evaluation model score places it in the top 1% for patients recovering from accidents and debilitating illnesses or dealing with chronic medical conditions. It's also been accorded top marks for patient acuity, or recovery level, resulting in higher insurance reimbursements and potentially greater profitability.
Images of Sacramento Rehabilitation Hospital
"Sacramento Rehab's success in the first two operating years is noteworthy. It is a testament to its consistent quality care and patient recovery results, which have led to the overflow referral agreements," says Ross Curtis, BV Securities' vice president of sales. "Ernest Health, the operator, is an industry leader and a solid tenant with a good track record."
The asset is secured by a 20-year absolute net lease with Dallas-based Ernest Health, which has a portfolio of 36 medical facilities in 13 states. The agreement includes annual rent escalations and two 10-year renewal options.
The just-launched DST is Bridgeview's fourth and first outside its home state of Texas. As with the others, the BV Ernest Health Neuro Rehab DST is a Regulation D equity raise for accredited investors seeking capital gains deferments, including a 1031 Exchange.
Mountain Dell Consulting has ranked Bridgeview 18th in the nation in 2024 for DST equity raise, demonstrating the market's value for its offerings. The company most recently sold out its $27.2 million BV Student Housing Texas Portfolio DST, which launched last summer with a pair of class A properties near Texas Christian University in Fort Worth and University of Texas at Arlington in Dallas.
for more information:
Rob Anderson
214-484-6331
rob.anderson@bvcapitaltx.com
Ross Curtis
214-833-2710
ross.curtis@bvcapitaltx.com
About Bridgeview
Bridgeview Real Estate Exchange is a member of the Bridgeview family of companies based in Dallas. Founded in 2011, Bridgeview is a private veteran-owned real estate development and investment company. Bridgeview distributes its DST offerings through BV Securities as Bridgeview’s managing broker dealer.
