• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
  • Blog
  • Free Resources
RevistaMed

RevistaMed

  • About
    • Meet Revista
    • Advisory Board
    • Partners
    • Press
    • Rising Leaders Council
    • Sponsorship
    • Contact Us
  • Events
    • 2025 Revista Medical Real Estate Investment Forum
    • Subscriber Webinar
  • Why Subscribe?
    • Revista x Pivotal
    • Featured Products
    • Business Development
    • Underwriting & Due Diligence
    • Asset Management
    • Capital Markets
    • Site Selection & Development
    • Leasing
  • Subscriber Login
Home / Mergers/Acquisitions / Sabra Healthcare REIT Reports Forest Park Frisco Medical Center Having Trouble Paying Rent

Sabra Healthcare REIT Reports Forest Park Frisco Medical Center Having Trouble Paying Rent

August 5, 2015 by Mike Hargrave Topics: Mergers/Acquisitions, Revista News

SABRA Healthcare REIT (NYSE: SBRA) reported in its quarterly earnings that Forest Park Medical Center (FPMC) in Frisco is having trouble paying rent as of June, 2015. SBRA said that FPMC approached it in 2Q15 and that in May of this year they entered into a memo of understanding to restructure the terms of the lease subject to FPMC obtaining financing. As of July 21, financing had not been obtained and SBRA reports uncertainty with regard to the timing and adequacy of financing.

SBRA paid $119.8 million for FPMC, a physician owned hospital developed by the Neal Richards Group. The hospital specializes in surgical procedures and has 54 total beds; including 30 inpatient rooms, 14 family suites, 10 ICU beds and 12 operating rooms. The initial yield on the acquisition was 8.75% for SBRA resulting in GAAP rent of $13.3 million according to SBRA. While the yield is attractive, the price paid works out to $875/SF which is considerably higher than the current running YTD average of $444 per SF.

In addition, SBRA reported $1.9 million in deferred interest on its mortgage loan with Forest Park Medical Center in Dallas. They also reported that the $110M investment in the Dallas mortgage loan is less than the estimated fair value of the real estate collateral, based on a third party appraisal of the real estate. Under the original terms, SBRA had an option to purchase the facility for up to $168 million.

Revista’s transaction tool allows searching for hospital real estate transactions, including acute care, acute rehabilitation and long term acute care. Contact us for more information or to schedule a demo.

Mike Hargrave
Mike Hargrave

Other Articles by Mike Hargrave:

    • A Look at 1Q25’s highest occupied Medical Office Market
    • Outpatient Real Estate Sector Riding a Wave of Strength!
    • Off Campus MOBs Catching up to On Campus MOBs in the Top 50 Metros

Previous Post:HCP buys 11 on campus MOBs from Memorial Hermann Health System
Next Post:Healthcare Trust of America, Inc. Increases Third Quarter Dividend

Sidebar

Topics

  • Construction/Development
  • Industry News
  • Leasing/Property Management
  • Mergers/Acquisitions
  • Policy/Legislation
  • Real Estate Financing/Capital Markets
  • Revista Best Practices
  • Revista News
  • Sponsor Spotlight
  • Transactions
  • Uncategorized

Archives

RSS Recent Blog Posts

  • Limited Transaction Volume to Start 2025 April 29, 2025
    The preliminary 1Q25 numbers are in, and they show that transaction volume has been slow to kick off the year. $1.5 billion worth of MOBs traded in the 1st quarter, and $8.9 billion traded over the past year. This suppressed level of activity is . . . The post Limited Transaction Volume to Start 2025 […]
    Stephen Lindsey
  • A Look at 1Q25’s highest occupied Medical Office Market April 28, 2025
    That’s right!  With a 1Q25 occupancy of 96.9%, Asheville NC is the highest occupied market of the largest 125 metros RevistaMed tracks each quarter.  Asheville, which is still recovering from the effects of Hurricane Helene in September of 2024, can find strength within its healthcare market and within the MOB sector. The post A Look […]
    Mike Hargrave
  • Rising Rents for Newly Built MOBs March 31, 2025
    How have rising construction costs affected rents? Revista’s construction data continues to show increases in the cost of building an MOB. The average cost per square foot came in at $549 for completed MOBs in 2024. That is a . . . The post Rising Rents for Newly Built MOBs appeared first on RevistaMed.
    Stephen Lindsey
  • Cap Rates by Property Price February 28, 2025
    Typically, the transaction stats we look at are only for MOB trades that are at least $2.5 million. However, we do have data on a solid portion of the smaller deals. In the chart below we compare cap rates based on the property price, including those under $2.5M . . . The post Cap Rates […]
    Stephen Lindsey

Other Free Resources

Industry Directory

Search for and/or list your medical real estate services in Revista’s medical real estate directory.

Reports & White Papers

Download free reports & white papers on medical real estate.

Add Lease/Sale Listing

Revista provides free lease/sale listings for healthcare real estate.

Ready to Schedule a Demo?

Get in Touch Now
  • Why Subscribe?
  • Events
  • The MOB Scene
  • Add A Directory Listing
  • Add Lease/Sale Listing
  • Contact Us
  • Sponsorship
  • About
  • Data Terms of Use
  • Sponsorship Terms
  • Press

SIGN UP FOR MOB SCENE NEWSLETTER

  • Twitter
  • Facebook
  • LinkedIn