Windrose says 56% of the leasable space is occupied by Methodist Hospital of Sacramento, CHW Medical Foundation, and Volunteer League of Methodist Hospital of Sacramento, affiliates of Catholic Healthcare West, the owner of Methodist Hospital of Sacramento. TheHospital is part of the Catholic Healthcare West system of 42 acute care hospitals.
As part of the transaction, Windrose assumed $5.4 million of debt at a fixed interest rate of 7.1% and utilized its secured bank credit facility to fund the remainder. Windrose intends to pay down the debt with a portion of the net proceeds from its recently priced common stock offering.
"With the Methodist Hospital of Sacramento, we have increased our asset base to over $149 million and entered the expanding California market," says Windrose chairman/CEO Fred Klipsch. "This property complements our strategy of acquiring specialty medical properties in desirable markets with attractive growth characteristics."
Windrose president/COO Fred Farrar says the local property is the first of five previously announced purchases to go through. "We expect to close the acquisition of the Elm Street Professional Plaza in Reno, NV before year-end, with the three other properties closing shortly thereafter," he says.
Windrose acquires, develops and manages specialty medical properties, such as medical office buildings, outpatient treatment and diagnostic facilities, physician group practice clinics, ambulatory surgery centers and specialty hospitals and treatment centers. At close of Markets Friday, the company's share price stood at $12.19, up $0.07 on the day. The stock's 52-week range is $8.85-$13.28.
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