Ernest Health
W. P. Carey completes $32 million acquisition of inpatient rehabilitation facility
Ernest Health
Strategically located and award-winning, Ernest Health's new Indiana facility set to boost patient care
Tenant Description: Founded in 2004, Ernest Health is one of the largest operators of post-acute care settings and the fifth largest operator of freestanding inpatient rehabilitation facilities in the U.S.
Total Investment: $32 million
Transaction Type: Acquisition of existing lease*
Location: Indiana
Square Footage: ~55,000 square feet
Facility Type: Inpatient rehabilitation facility
In March 2025, W. P. Carey completed the $32 million acquisition of an inpatient rehabilitation hospital facility located in Indiana. Approximately 55,000 square feet and containing 40 inpatient beds, the facility is net leased to Ernest Health, a leading healthcare provider, for a term of 15 years.
The facility is a newly constructed, purpose-built freestanding inpatient rehabilitation facility, offering a wide range of services to recovering patients. It’s strategically located across from Saint Joseph Health System, which includes two acute care hospitals alongside more than 150 in-network providers, community health centers and other ancillary care. There are no other freestanding inpatient rehabilitation facilities within a 30-mile radius, limiting competition and boosting overall occupancy of the facility above market averages. It was named among America’s Best Physical Rehabilitation Centers in 2024 by Newsweek.
*In an acquisition of an existing lease, W. P. Carey will acquire a single-tenant property subject to an existing net lease. This type of transaction enables the previous property owner to achieve a number of different objectives depending on their needs. For example, exit a property that no longer fits its strategy, liquidate a finite-life fund or generate proceeds to invest in new properties or for M&A activity.
“We’re thrilled to acquire our first inpatient rehabilitation facility. Healthcare is a sector that continues to outperform due to its ability to withstand economic volatility while catering to the essential needs of a growing and aging population. This acquisition underscores the benefits of our diversified investment approach and our ability to allocate capital to asset types and markets where we see the best risk-adjusted returns. We look forward to welcoming our newest tenant and exploring additional healthcare opportunities in the future.”