H2C Secures Joint Venture Equity for Development of a State-of-the-Art Inpatient Rehabilitation Facility in QOZ
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About America Development & Investments
Founded in 2001, America Development & Investments, LLC, focuses on healthcare real estate development. Nationally, it has developed approximately 2 million square feet of real estate. Within the last 18 years, America Development & Investments has completed more than 80 projects – on time and under budget – from site selection and entitlements to design, construction, development, management, and disposition of properties. Other projects include office, mixed use, sports clubs, and office-warehouse sites. For more information, visit americadevelopment.com.
About Reunion IRF
Reunion IRF is a partnership between America Development & Investments, Brandon Holdings and Nobis Hospital Investments, LLC to develop and operate inpatient rehabilitation facilities in select markets across the United States. For more information, visit reunionrehabhospital.com.
About Nobis Rehabilitation Partners
Nobis Rehabilitation Partners brings together hospitals, developers, and investment partners to develop, operate, and manage inpatient rehabilitation facilities. Our patients will receive the best care by the finest caregivers in the most uniquely designed and efficient hospital. For more information, visit nobisrehabpartners.com.
About Hammond Hanlon Camp LLC ("H2C")
H2C is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers and acquisitions, capital markets, real estate, and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. H2C offers securities through its wholly owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, visit h2c.com.
Kelly T. Duong
Hammond Hanlon Camp LLC
311 South Wacker Drive
Chicago, IL 60606
4655 Executive Drive
San Diego, CA 92121
"We believe the new hospital will provide greater access to state-of-the-art inpatient rehabilitation care, in addition to bringing new healthcare-related jobs to the local economy.”
— Jeffrey Jones, Partner Reunion Rehabilitation Hospital Phoenix
NEW YORK— Sept. 30, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to a privately held joint venture that is developing a 48-bed, 51,580-square-foot inpatient rehabilitation facility (“IRF”) in Phoenix, Ariz., to be known as “Reunion Rehabilitation Hospital Phoenix” (the “Property” or “Project”). An H2C team led by Matthew Tarpley, Vice President, and Brady Stern, Director, executed the transaction.
The Project will be developed by Dallas-based America Development & Investments, Ltd (“ADI”), a leading healthcare real estate developer, with groundbreaking planned for early October 2020. Upon completion, which is scheduled for Q3 2021, the hospital will be managed by Nobis Rehabilitation Partners, LLC (“Nobis Rehabilitation Partners”). The Phoenix location represents the fourth development between ADI and Nobis Rehabilitation Partners and follows the development of IRFs in Dublin, Ohio, and two projects in Denver, Co., which are expected to open in Q1 2021 and Q4 2021.
The three-story rehabilitation facility will provide inpatient care for people with debilitating illnesses and injuries such as stroke and brain injury as well as other complex neurological and orthopedic debilitating conditions.
The planned development is located within a Qualified Opportunity Zone (“QOZ”) approximately two miles east of Downtown Phoenix. Due to its proximity to four acute care hospitals and the sponsorship team’s unparalleled track record in the IRF sector, significant interest was received from public REITs and small-to-large real estate private equity firms alike.
“We believe the new hospital will provide greater access to state-of-the-art inpatient rehabilitation care, in addition to bringing new healthcare-related jobs to the local economy.” said Jeffrey Jones, a partner in Reunion Rehabilitation Hospital Phoenix.
The funding successfully closed in 118 days from process launch, demonstrating a highly efficient process with a successful outcome in the midst of the COVID-19 pandemic. The joint-venture equity will be provided by a Texas-based real estate private equity firm with a demonstrated track record in the healthcare sector that invests with best-in-class sponsors that are experts in their respective markets and product types. Notably, the transaction represented H2C’s fourth engagement in the IRF space over the past 24 months, a space in which H2C has developed a true expertise.
“We were engaged by a first-class developer and sponsorship team, which allowed us to leverage our healthcare real estate platform with the sponsorship’s breadth of expertise to drive this to a successful outcome in an expedited manner. We believe that the Reunion team is poised for future success through strategic growth, and it was apparent through our competitive process that a diverse group of investors felt the same,” Tarpley said. Email Matthew.
“With the transition to the Patient Driven Payment Model (“PDPM”), we believe IRFs may become the preferred setting for intensive rehabilitation programs,” added Stern. “Providing first-class care in purpose-built facilities and driving the growth of ADI, Reunion, and Nobis along with it is something we’re proud to facilitate.” Email Brady.