After the operators defaulting on a $160MM loan, Lakeway Regional Medical Center has been sold by the US Department of Housing and Urban Development for just $50MM.
A new health care investment company called MedEquities is the new owner and they have announced their intention to lease the facility to the existing doctors/investors group.
Here's the full release:
MEDEQUITIES REALTY TRUST ACQUIRES HUD LOAN SECURED BY LAKEWAY REGIONAL MEDICAL CENTER IN LAKEWAY, TEXAS
Pursues Facility Strategic Plan with LRMC Operating Group
NASHVILLE, TN, January 13, 2015 – MedEquities Realty Trust, Inc. today announced it has acquired the outstanding mortgage loan secured by Lakeway Regional Medical Center (“LRMC”) in the Austin suburb of Lakeway, Texas. The loan, which was originally insured by the U.S. Department of Housing and Urban Development, had been in default and MedEquities is currently executing a structured and collaborative process of foreclosure to acquire fee simple title to the facility, which is expected to be completed in early February 2015.
MedEquities is executing the agreed-to foreclosure as it transitions from a creditor to a landlord and will provide working capital advances to the LRMC hospital operator until the process is completed. Upon acquisition of fee simple title, MedEquities expects to enter into a mutually agreed upon lease of the hospital real estate to the LRMC hospital operator pursuant to a 25-year triple net lease. Also, MedEquities is working with the LRMC hospital operator and other key hospital constituencies on a long term strategic operating plan designed to ensure continued viability and provision of exceptional healthcare services at the hospital.
Lakeway Regional Medical Center is a 106-bed acute care hospital that opened in April 2012. Located 20 miles northwest of Austin, Lakeway is a highly affluent community situated on the south shore of Lake Travis with excellent schools and a steady influx of both young families and retirees, leading to a favorable payor mix for LRMC.
John McRoberts, MedEquities’ Chairman and Chief Executive Officer, commented, “We are very excited about both the near-term and long-term potential at Lakeway Regional Medical Center. Sourcing this unique investment opportunity took a coordinated and highly collaborative effort by our experienced team and the LRMC operating group. We have a strategic vision to grow LRMC through new service lines, attracting additional specialty physician users and improving the experience and outcomes of LRMC’s patients as a result. This is a great first step in solidifying the hospital’s position in the greater Austin market, and we look forward to sharing more details on the strategic plan at a later date as the specifics become better defined.”
Frank Sossi, LRMC’s Interim Acting Chairman of the Board, added, “MedEquities has been highly communicative and collaborative with us from the day it acquired our debt and is aligned with our mission, vision and values for meeting the needs of patients. We look forward to working with MedEquities to restructure our current operations and explore alternatives for growing our business and maintaining our vital role in the Lakeway community.”
About MedEquities Realty Trust
MedEquities Realty Trust is a self-managed and self-administered company that invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. The Company’s management team has extensive industry experience in acquiring, owning, developing, financing, operating, leasing and monetizing many types of healthcare properties and portfolios. MedEquities’ strategy is to become an integral capital partner with high-quality and growth-oriented facility-based providers of healthcare services on a nationwide basis, primarily through net-leased real estate investments.
About Lakeway Regional Medical Center
LRMC’s medical campus is located in Lakeway, Texas, less than 20 miles from downtown Austin, and specializes in physician-provided services that meet the needs of our community. LRMC is a state-of-the-art medical campus dedicated to the delivery of world-class healthcare. LRMC provides services in emergency medicine, family practice, cardiology, cardiothoracic surgery, radiation oncology, general surgery, gastroenterology, women’s health, infusion therapy, diagnostic and therapeutic radiology, respiratory, physical therapy and sports medicine, occupational therapy, speech-language pathology, and pain management. For more information about LRMC, visit lakewayregional.com or call 512-571-5000.