Bridgeview Real Estate Exchange, a sponsor specializing in Delaware statutory trusts, has introduced a new $77 million investment offering designed for 1031 exchange investors. The offering, BV Ernest Health Neuro Rehab DST, is comprised of a modern neuro-rehabilitation hospital in Sacramento, Calif.
The investment centers on the Sacramento Rehabilitation Hospital, a 50-bed facility located at 10 Advantage Court, just north of the city center. The BV Ernest Health Neuro Rehab DST is structured as a zero-debt offering.
“Medical assets, such as rehabilitation hospitals, are generally perceived as stable investments because demand remains a constant in any economy,” stated Rob Anderson, president of BV Securities, Bridgeview’s managing broker-dealer based in Dallas. “The Sacramento Rehabilitation Hospital focuses on re-teaching daily living skills to neurological patients. Its multidisciplinary services are always in demand and not impacted by economic cycles.”
Opened in January 2023, the hospital serves a unique niche as the sole inpatient neuro-rehabilitation facility in northeast California, reportedly maintaining an average occupancy rate of 95%. To sustain high patient levels, the operator has established overflow referral agreements with two major regional healthcare providers.
Industry metrics rank the Sacramento Rehabilitation Hospital highly, placing it among the top 1% of 886 similar facilities nationwide based on its program evaluation model score for patient recovery. The facility has also received recognition for high patient acuity levels, which can lead to better insurance reimbursements.
“Sacramento Rehab’s success in its first two operating years is noteworthy,” said Ross Curtis, vice president of sales at BV Securities. “It is a testament to its consistent quality care and patient recovery results, which have led to the overflow referral agreements. Ernest Health, the operator, is an industry leader and a solid tenant with a good track record.”
The property is under a 20-year absolute net lease agreement with Dallas-based Ernest Health, which operates a portfolio of 35 medical facilities across 13 states. The lease includes provisions for annual rent increases and two options for 10-year renewals.
This launch represents Bridgeview’s fourth DST offering and its first outside its home state of Texas. Like its previous offerings, the BV Ernest Health Neuro Rehab DST is a Regulation D equity raise targeting accredited investors, particularly those seeking to defer capital gains through mechanisms like a 1031 exchange.
The firm recently completed its $27.2 million BV Student Housing Texas Portfolio DST, which featured properties near Texas Christian University and the University of Texas at Arlington.
Founded in 2011, Bridgeview is a private veteran-owned real estate development and investment company. Bridgeview distributes its DST offerings through BV Securities as Bridgeview’s managing broker-dealer.
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