Dover rehab center sold for $21M
DOVER – The recently opened PAM Rehabilitation Hospital of Dover was sold by its Dallas-based investment and development firm earlier this month.
Medcore Partners sold the 42,140-square-foot acute inpatient rehabilitation facility (IRF) that it finished last year for $21.3 million, according to Kent County land records. The buyer was a joint venture including Charlottesville, Va.-based real estate development, management and investment firm Anchor Health Properties and Chicago-based real estate investment firm Harrison Street Real Estate.
The rehabilitation hospital is operated by Pennsylvania-based Post Acute Medical (PAM), and is only one of four such facilities in the state and the only in Kent County.
The developer and PAM navigated the state’s Certificate of Need process to secure necessary approvals for the facility, which opened in early 2019.
Located at 1240 McKee Road, the 34-bed, two-story rehabilitation center includes an inpatient and outpatient gym, a radiology suite, laboratory services, and a full dietary department. The facility provides care for patients with traumatic brain injury, stroke, Parkinson’s, amputations, hip fractures and orthopedic injuries.
“This transaction is consistent with our commitment to partner with best-in-class health care providers and operators. As we continue to expand our presence in the Mid-Atlantic region, we look forward to growing with PAM and supporting their efforts to bring much needed, high-quality rehabilitative services to the region,” said Mervyn Alphonso, senior vice president with Anchor, in a statement announcing the acquisition.
The purchase of the Dover center is the sixth acquisition by the 35-year-old Anchor, which has more than 6 million square feet of health care-focused space under management and another 1 million square feet under development. Despite the impact of the COVID-19 pandemic on the real estate market, Anchor said that it intended to continue seeking new investments.
“We continue to be quite active across the United States through uncertain times in the capital markets and are looking forward to expanding our presence in the IRF sector,” Anchor’s Chief Investment Officer James Schmid said in a statement. “Maintaining a positive outlook and keeping active on the investment front right now is more critical than ever. We are seeing an increase in demand for medical services and we expect this strong demand to continue for the foreseeable future. The sector has proven to rebound quickly following state lockdowns as health care is a basic need for American consumers.”
The buyer had previous contacts with MedCore Partners that led to the June 8 sale.
“It was a pleasure working with the knowledgeable team at Anchor,” said Michael Graham, a MedCore partner, in a statement. “The firm’s ability to creatively execute complex transactions coupled with their commitment to effectively work with us to complete this transaction, positioned Anchor as the natural selection for this acquisition.”
The PAM Rehabilitation Hospital sale is the second large investment sale of a Dover-based health care asset in the past year. A joint venture of out-of-state investors bought the Eden Hill Medical Center for more than $36 million in January.
By Jacob Owens