Chiron Real Estate announced that it has completed the sale of seven inpatient rehabilitation facilities to a joint venture between the company and a U.S. public pension fund advised by a global real estate investment management firm.
The initial portfolio of inpatient rehabilitation facilities was valued at an aggregate $217 million.
The transaction was structured through a joint venture in which the investor acquired an 85% equity interest.
Chiron retained a 15% equity stake and will serve as manager of the joint venture.
As manager, Chiron will continue overseeing asset management in exchange for a management fee.
The company said the transaction is designed to accelerate its portfolio transition by targeting the arbitrage between public and private market valuations.
Chiron also said the deal unlocks proceeds that can be reinvested into higher-return opportunities while maintaining a resilient balance sheet.
The assets sold to the joint venture total approximately 456,000 square feet.
The properties are 100% leased and have a weighted average remaining lease term of eight years.
Chiron plans to use proceeds from the transaction to fund its pipeline of higher-return investments.
That pipeline includes the previously announced acquisition of Pinnacle North Bethesda for approximately $176 million.
The Pinnacle transaction is expected to close on or before October 2026, subject to customary closing conditions and purchase price adjustments.
Pinnacle North Bethesda is a 282,000-square-foot luxury seniors housing community with 175 homes and ground-floor retail.
The community is located in North Bethesda, adjacent to Pike & Rose and within the Pike District.
The property includes 88 independent living homes, 59 assisted living homes, and 28 memory care homes.
Fifth Third Securities served as financial advisor to Chiron.
Chiron is a real estate investment trust focused on investing in the future of healthcare.
The company said its mission is to deliver value at the intersection of care, capital, and real estate.
KEY QUOTES:
“Our strategy is to be a disciplined capital allocator. We intend to redeploy proceeds from these sales into higher return on capital investments while maintaining a resilient balance sheet. We will use every tool at our disposal to fulfill our mission to deliver value at the intersection of care, capital, and real estate.”
“Our team did a fabulous job on this transaction, and we’re pleased to deepen our relationship with this real estate investment firm, while establishing a new relationship within the public pension space. This vehicle is a major milestone for Chiron as we continue to position our platform for superior long-term performance.”
Mark Decker, Jr., CEO of Chiron
