BV Ernest Health Neuro-Rehab DST

BV Capital raised $11.5MM to provide bridge capital for the purchase of a 50 bed Inpatient Neuro Rehabilitation Hospital. The facility is leased to Vibra Healthcare, a subsidiary of Ernest Health Holdings a healthcare corporation that fully guarantees the lease.

The property is located in North Sacramento along Interstate 5 between the airport and downtown. The build-to-suit construction began in 2020 and is expected to be finished in early September 2022, when Vibra will take occupancy.

Exit Comp:

We’ve just received a great new comp for this project. There is another specialty hospital in Oklahoma City that just received 23 offers at a 6% cap rate and that market is significantly smaller, the property is older and has a shorter lease term with a non-investment grade tenant. For our deal to break even, we only need to sell the asset at a 6.14% cap rate. Thus, with the comps we’ve seen for this type of product in both similar and significantly smaller markets we’re confident that we can quickly sell this asset for a profit and pay back investors their capital and preferred return.

An “accredited investor” is a category of person permitted to participate in certain unregistered securities offerings. A simple way to think of the line-drawing exercise the SEC is engaged in here is that the more capable an investor is of fending for him/herself in an offering, and the more able an investor of withstanding a complete loss on the investment, the less the SEC is concerned about mandating the obligations of a public reporting company on an issuer.

For natural persons, an “accredited investor” is anyone who has either: (1) earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, or (2) a net worth of over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). There are other exemptions based on financial sophistication, but these thresholds are the most generic in terms of determining accreditation status.

For entities, there are a number of tests to determine whether the entity in question is accredited. For the most part, if the entity has over $5 million in total assets or all of the owners of the entity are accredited, then the entity will be deemed to be accredited.

Visit Our Knowledge Center

BV Ernest Health Neuro-Rehab DST

Property Highlights:

Offering Details

Healthcare

Preferred EQUITY

$11.5MM

20.00%

Exit Comp:

Sacramento, CA Market Overview:

FULLY FUNDED CURRENT PROJECTS

investment offerings

Get in Touch