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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.
We’ve received a great comp for this project. There is another specialty hospital in Oklahoma City that received 23 offers at a 6% cap rate in a market that is significantly smaller, and the property is older with 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. With the comps we’ve seen for this type of product in both similar and significantly smaller markets we are confident that we can quickly sell this asset for a profit and pay back investors their capital and preferred return.
Sacramento is one of the fastest-growing major cities in California, being a notable financial center on and major educational hub on the West Coast. Similarly, Sacramento houses the headquarters for several major health care institutions, including the world-renowned UC Davis Medical Center and the UC Davis School of Medicine.
2025 MSA Population – 2,269,000
The current metro area population of Sacramento in 2025 is 2,269,000, a 1.16% increase from 2024
Sources: realestateu.com, macrotrends.net