Summary:
Exchange-X, along with managing partner Bridgeview Real Estate, is pleased to announce the offering of BV Ernest Health Neuro Rehab DST. Opened in January 2023, BV Ernest Health Neuro Rehab DST features a long-term 20-year Absolute Net lease extending through January 4, 2043, which also includes two additional 10-year tenant options. The lease structure incorporates annual rent escalations, providing a stable and growing income stream. The facility boasts 50 total beds and demonstrates strong operational performance with a 95% average occupancy rate as of December 31, 2024. Further bolstering its market position are active overflow referral agreements with prominent healthcare providers Kaiser Permanente and UC-Davis Medical Center.
The Trust owns a ground leasehold interest in the Land (i.e., approximately 6.23 acres of land located at 10 Advantage Court, Sacramento, California 95834) and a fee simple interest in the Improvements, which include a two-story, 59,508-square foot building that is home to the 50-bed Sacramento Rehabilitation Hospital (https://srh.ernesthealth.com/), a state-of-the-art inpatient rehabilitation facility that is Sacramento’s only neurospecialty rehabilitation facility. The Trust is the tenant under the Ground Lease. The Ground Lease has a term of 60 years, which commenced on April 16, 2025 and terminates on March 30, 2085 with no extensions.
The Sacramento Rehabilitation Hospital provides specialized services to patients recovering from disabilities caused by accidents, illnesses, or chronic medical conditions. These disabilities occur
regardless of the economic environment. The inpatients receive a multidisciplinary team to maximize their return of functional capabilities, perform daily activities, return to work (or school), and pursue leisure activities. Patients treated in rehab hospitals vs. skilled nursing facilities live longer, have fewer hospital and ER visits, and remain longer in their homes without additional outpatient services.
Ernest Health is a network of rehab and long-term acute care hospitals that see patients who are often recovering from disabilities caused by injuries or illnesses or from chronic or complex medical conditions. Ernest owns 35 facilities (four in California and the others across 13 states). The hospital network has earned national recognition as a healthcare leader, providing patients with the highest level of care.
Located in the Sacramento-Roseville-Folsom, California MSA which boasts a large concentration of major medical providers, including UC Davis Medical Center, California’s only Level 1 trauma center north of the Bay Area. Healthcare accounts for an above-average share of employment in SAC in part because of its importance to neighboring rural counties with fewer providers. The Appraiser is aware of no other known planned rehabilitation hospitals in the local and immediate area that would provide negative competition to the Property.
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1031 Risk Disclosure:
