Tuesday, April 07, 2009

Cirrus To Build $24M Rehab Center

Reliant Rehabilitation Hospital

DALLAS-Cirrus Group will launch construction later this month on a 65,000-square-foot build-to-suit rehabilitation hospital for Reliant Healthcare Partners. If all goes according to plan, Reliant will be able to lease and operate the $24 million center by this time next year.

The as-yet unnamed hospital, which will be at Northaven Road and U.S. 75 is Reliant Healthcare's first in Dallas proper, though it has similar facilities up and running in other parts of Texas including Austin, Houston and Richardson. The project is also the first time the Addison, TX health care company partnered with Cirrus Group as developer. The facility will offer 40 beds licensed for inpatient rehabilitation and 20 beds licensed for skilled nursing.

Cirrus Group director of finance Chris Godfrey tells GlobeSt.com the developer just closed on a $16.7 million loan for the construction. Colonial Bank issued the three-year, floating rate loan and Godfrey acknowledges he's grateful to have it. In the current economy, those on the equity and debt side aren't so quick to loosen purse strings for construction projects.

However, "both the lender and equity partners were excited about this," Godfrey says. "The fact it was a healthcare project played a large part in getting the financing." Healthcare real estate developments, though not recession-proof, are still viable as far as lenders are concerned, Godfrey says.

Also helpful when it came to obtaining the loan was Reliant's track record as a proven operator that could tenant the facility once it was open. Finally, Cirrus Group's relationship with Colonial Bank worked in the project's favor. "We've worked with Colonial on other projects before and they know our strong track record as developers of medical real estate," Godfrey says.

By Amy Wolff Sorter, GlobeSt.com