Medical Properties Trust has sold the 50-bed Arizona General Hospital in Mesa, Ariz., and seven freestanding emergency department (FSED) facilities in the Phoenix metropolitan area to Dignity Health, a wholly owned subsidiary of CommonSpirit Health, for $160 million. The sale price and current cash rents imply a capitalization rate of less than 7.5 percent. The company intends to use the proceeds from the transaction to reduce debt and for general corporate purposes.
Construction of the eight facilities was funded by MPT for original operator Adeptus Health between 2015 and 2017 at a total initial cost of $92 million. The specific locations for the hospital and surrounding FSEDs were chosen carefully in the underwriting process based on their strategic value in caring for lower-acuity patients closer to their homes and in diagnosing injuries and illnesses requiring advanced treatment at the system’s general acute facilities. Shortly after Adeptus filed for Chapter 11 bankru
