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ANAHEIM, CA-The Medical Properties Trust Inc. REIT of Birmingham, AL has acquired three community hospitals totaling 491 beds for $60 million in a sale-leaseback and plans to spend $10 million to renovate the facilities. The properties are the 219-bed West Anaheim Medical Center, the 141-bed La Palma Intercommunity Hospital and the 131-bed Huntington Beach Hospital.

Medical Properties Trust bought the three facilities from Prime Healthcare Systems, which will now lease the three hospitals under long-term net lease deals. Prime Healthcare is Medical Properties Trust’s second largest tenant and now operates seven of the REIT’s 25 properties.

The initial term for the three leases is 15 years, with options to extend for three terms of five years each. The leases of the three properties will be cross-defaulted and guaranteed by Prime.

The deal also provides that Prime Healthcare can buy back the West Anaheim and La Palma hospitals after the 10th anniversary of the lease, and in the case of the Huntington Beach hospital Prime can buy it back after seven years.

West Anaheim Medical Center, founded in 1964, is a 180,000-sf facility at Orange Avenue and Beach Boulevard, about a mile south of Knott’s Berry Farm. La Palma Intercommunity Hospital is a 93,000-sf center at 7901 Walker St. that was founded in 1972, and Huntington Beach Hospital is a 110,000-sf property at 17772 Beach Blvd. that was established in 1967.

The acquisitions of the Orange County hospitals follow Medical Property Trust’s August acquisition of the 102-bed Montclair Hospital Medical Center in San Bernardino County for $25 million in August. The REIT said it would invest $20 million for the initial acquisition and $5 million for future renovations. Montclair was also a deal with Prime Healthcare Systems under a 15-year net lease, with options to extend for three terms of five years each.

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