NewEra
W. P. Carey acquires four inpatient rehabilitation facilities in the U.S.
Tenant Description: Healthcare provider that serves patients recovering from debilitating illnesses and injuries
Total Investment: $137 million
Transaction Type: Acquisition of existing leases*
Location: U.S. (four states)
Facility Type: 4 inpatient rehabilitation facilities
W. P. Carey completed the $137 million acquisition of four inpatient rehabilitation facilities (IRFs) located in Indiana, Louisiana, Wisconsin and Kansas. The portfolio, totaling approximately 191,000 square feet, was developed and owned in partnership by New Era Companies and WB Development Partners. It is triple-net leased to NewEra Nobis Operations Holdings (NewEra), a rapidly expanding healthcare provider specializing in comprehensive rehabilitation services for patients recovering from debilitating illnesses and injuries. As part of the transaction, W. P. Carey is also funding a 10-bed expansion of the Kansas facility, underscoring the strong demand and early success of this facility. The facilities are managed by Nobis Rehabilitation Partners, one of the largest and fastest-growing managers of freestanding IRFs.
The portfolio consists of purpose-built, freestanding IRFs that deliver a broad range of rehabilitation services to patients. All locations recently received the “Center of Excellence (COE) Designation for Rehabilitation Services and Stroke Care” from the Center for Improvement in Healthcare Quality (CIHQ), underscoring Nobis’s commitment to high-quality, safe patient care. The facilities are located near major referral hospitals and along major interstates or local highways, enhancing accessibility for patients and overall occupancy.
The portfolio is net leased for a weighted-average term of approximately 17 years with fixed annual rent increases.
*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 are thrilled to partner with W. P. Carey as we expand our network of rehabilitation facilities. These purpose-built, state-of-the-art facilities allow us to deliver the highest-quality care to patients recovering from serious illness or injury, as evidenced by their certification as Centers of Excellence in Rehabilitation Services and Stroke Care. This partnership supports our mission to help patients regain independence and improve outcomes, while enabling us to continue growing our services in communities that need them most.
We’re thrilled to make our second investment in inpatient rehabilitation facilities. We believe this asset type plays a critical role in the continuum of care and offers attractive, long-term investment potential driven by stable demand and strong underlying fundamentals. These newly developed, purpose-built IRFs—developed by New Era Companies and operated in partnership between NewEra and Nobis—are located in growing markets with strong demand drivers. We welcome our newest tenant and are pleased to support their ongoing real estate needs through the expansion of the Kansas facility.