H2C CLIENT TRANSACTION
H2C Secures Construction Debt for the Development of an Inpatient Rehabilitation and Long-Term Acute Care Facility in Ohio
July 12, 2021
Rendering provided by ACI Boland, Inc. & Catalyst HRE, LLC
About Catalyst Healthcare Real Estate
Catalyst, a nationwide full-service healthcare real estate firm, was founded in 2011 on the vision of understanding the unprecedented changes in the healthcare industry and the commitment to offer innovative solutions that drive operating efficiencies and results. Key leadership of Catalyst has experience in healthcare and real estate administration, strategy, development, brokerage, property / leasing services, and facility management. Catalyst seeks to achieve healthcare provider goals by working in partnership with its clients to design a comprehensive real estate solution that best supports their mission, vision, and values. For more information, visit www.catalysthre.com.
About H2C Securities Inc. (“H2C”)
H2C is a strategic advisory and investment banking firm committed to providing superior advice 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.
Securities and services offered through H2C Securities Inc., member FINRA/SIPC,, a registered broker-dealer and an indirect subsidiary of Fifth Third Bank, National Association. All rights reserved. Securities and services offered through H2C Securities Inc.: Are Not FDIC Insured; Offer No Bank Guarantee; May Lose Value; Are Not Insured by any Federal Government Agency; Are Not a Deposit.
For more information, visit h2c.com.
NEW YORK — H2C Securities Inc. (“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 62-bed, 74,640- square-foot inpatient rehabilitation facility (“IRF”) and long-term acute care hospital (“LTACH”) in Miamisburg, Ohio, to be known as ”Post Acute Medical of Dayton” (the “Project”). Vice President Matthew Tarpley led the transaction for H2C.
The Project will be developed by Pensacola, Fla.-based Catalyst Healthcare Real Estate (“Catalyst”), a leading healthcare real estate developer, with groundbreaking planned for July. The shovel-ready Project is strategically located near Kettering Health Network's 168-bed Sycamore Medical Center campus. Upon completion, which is scheduled for early Q3 2022, the hospital will be operated by Post Acute Medical (“PAM”). The Miamisburg development represents the second development between PAM and Catalyst and follows the development of an IRF in Delaware, expected to open in Q4 2021.
Headquartered in Pennsylvania, PAM is a leader in providing post-acute healthcare services and operates 40 long-term acute care and inpatient rehabilitation hospitals as well as more than 32 outpatient physical therapy locations across 12 states. The Miamisburg facility follows PAM’s entry into Ohio with its acquisition of LifeCare Hospitals of Dayton in 2019, where it operates a 44-bed LTACH unit at Kettering Health Network’s Sycamore Medical Center.
The state-of-the-art, two-story Miamisburg facility will feature 40 IRF beds and 22 LTACH beds. It 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 conditions with the goal of returning patients to their highest possible functional status.
"We are excited about expanding our relationship with Post Acute Medical, and believe that Southwest Ohio presents a compelling healthcare investment opportunity," said Alex Stacy, Chief Operating Officer of Catalyst Healthcare Real Estate. The financing successfully closed in less than 120 days from process launch, demonstrating a highly efficient process that garnered interest from national lenders as well as small-to-midsized regional banks.
The financing will be provided by a Southeast-based regional bank. Notably, the transaction represented H2C’s sixth engagement in the IRF space over the past 24 months, demonstrating strong expertise in this space.
“We were engaged by a first-class developer, which allowed us to leverage our healthcare real estate platform and knowledge of the IRF space alongside Catalyst’s breadth of expertise and successful track record to drive this to an optimal outcome,” Tarpley said. “We believe there are tailwinds supporting the future growth of the inpatient rehabilitation sector, and it was clear that the appeal of the build-to-suit healthcare real estate project allowed us to drive interest from a diverse group of lenders, which made this a competitive process.”