BridgeView BV Ernest Health Neuro Rehab DST
Investment Details
Investment Sponsor: BridgeView Capital
Location: California
Current Yield: 5.70%
721 Exchange: None
Property Type: NNN Medical
In-Place Loan: 0% LTV
Distribution Frequency: Monthly
Estimated Hold Period: 7-10 Years
Investment Description
The Sacramento Rehabilitation Hospital provides specialized services to patients recovering from disabilities caused by accidents, illnesses, or chronic medical conditions. These disabilities occur regardless of the economic environment. The inpatients receive a multidisciplinary team to maximize their return of functional capabilities, perform daily activities, return to work (or school), and pursue leisure activities. Patients treated in rehab hospitals vs. skilled nursing facilities live longer, have fewer hospital and ER visits, and remain longer in their homes without additional outpatient services.
Investment Highlights
The Sacramento Rehabilitation Hospital is the top-performing facility in the Ernest Health network of 35 facilities so rent coverage is outstanding.
The lease in place is 20 years with 1.5% annual rent bumps and two 10-year extensions at “then-market-rates”.
The sponsor wants to sell the property with 10 years left on the initial lease.
Facility opened in January 2023; 20-year lease through January 4, 2043; Absolute Net lease with two 10-year tenant options; Annual rent escalations.
50 total beds with 95% average occupancy.
Active overflow referral agreements with Kaiser Permanente and UC-Davis Medical Center.
For a newer facility, it is already a top performer of the 886 rehabilitation hospitals across the US per their top 1% PEM score as of February 2025.
Insurers favor rehabilitation centers for their lower care costs than a prolonged stay in the ICU at traditional hospitals. Sacramento Rehabilitation Hospital’s current Case Mix Index score is 1.81x as of February 2025. The index essentially says that the hospital’s patient acuity is higher, resulting in higher payouts from insurance reimbursements resulting in potentially higher profitability on a relative basis.
Investment Documents
Investment Sponsor
Bridgeview Real Estate is a privately held owner, developer, and operator of commercial real estate in Texas with a primary focus on multifamily, office, and mixed-use properties. Their investments are opportunistic in nature and include primarily high-quality real estate in core or secondary markets. They provide unique investment opportunities that generate substantial returns on behalf of their institutional partners, private investors, and our own principals. While their principals are individually creative in character, collectively they provide accretive expertise in multiple product segments that span all facets of real estate, including investment management, asset management, property management, and construction & development.
Sponsor Historical Performance
14 Realized 1031 DST Investments
2.03x Equity Multiple
33.24% Average Annual Return
3.2 Year Average Holding Period
100% Investment Success Rate
