Florida Hospital Sold for $37 Million – But It’s Still Business as Usual

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In a recent real estate shake-up, the Kindred Hospital in Palm Beach County has officially changed hands for a cool $37.23 million. But if you're wondering whether this means the hospital will be shutting its doors or undergoing major changes, here's the scoop: Kindred Healthcare is sticking around.

The Details of the Deal

Kindred Hospital (The Palm Beaches) PropCo LLC, an affiliate of Louisville, Kentucky-based Kindred Healthcare, sold the 79-bed facility located at 5555 W. Blue Heron Blvd. in Riviera Beach to VTR KH TPB LLC, a part of the Chicago-based real estate investment trust Ventas (NYSE: VTR). Despite the sale, Kindred Healthcare won’t be packing up and leaving anytime soon. They’ve signed a lease agreement to continue running the hospital until September 30, 2034, with options to extend for two additional five-year periods.

What Does This Mean for the Hospital?

Kindred Hospital (The Palm Beaches) is a long-term acute care (LTAC) facility that spans 70,660 square feet and includes an 11-bed acute rehabilitation unit, serving patients recovering from debilitating injuries and illnesses. Built in 2008 on a four-acre site, it has played a vital role in the community for those requiring extended medical care. And thanks to this leasing agreement, it seems the hospital will continue its operations without any major disruptions.

Part of a Bigger Picture

This isn’t just a one-off transaction; it's actually part of a much larger deal between Ventas, Kindred Healthcare, and its parent company, ScionHealth. Back on September 16, Ventas announced that it had reached agreements to amend leases for 23 Kindred LTAC hospitals, extending their lease terms by five years past the original April 30, 2025, expiration date. Along with this lease extension, the base rent saw an increase, ensuring a steady income flow for Ventas.

As part of this larger deal, Ventas acquired the real estate of five Kindred LTAC hospitals for a combined $189 million. This sale includes the Palm Beach County hospital, which is one of those five facilities. Ventas will now lease these properties back to Kindred, with the annual rent totaling around $16 million.

What’s Next for Kindred Hospital in Palm Beach County?

For now, it's business as usual at the Riviera Beach location. This means that patients and staff can expect the same level of care and services they've come to rely on, despite the change in ownership. Kindred Healthcare’s commitment to continuing operations under this long-term lease suggests that it will remain a key player in the local healthcare scene for years to come.

In the world of healthcare real estate, deals like this often fly under the radar, but they can have a big impact on the communities they serve. While the ownership might have changed, it’s reassuring to see that Kindred Hospital in Palm Beach County will continue to provide essential care, just as it has for years. So, if you’re in the area and in need of long-term acute care, rest easy – Kindred is still there to help.