Anchor Health JV Buys Delaware Medical Property

The 42,140-square-foot asset leased to Post Acute Medical is the only inpatient rehabilitation facility in Kent County.
1240 Mckee Road. Image courtesy of Anchor Health Properties

Anchor Health Properties has partnered with an affiliate of Harrison Street Real Estate for the purchase of a 42,140-square-foot inpatient rehabilitation facility in Dover, Del. Chestnut Healthcare Fund I, Anchor’s discretionary equity fund, also invested in the Class A asset. The seller was the joint venture of MedCore Partners and Post Acute Medical. Siemens Financial Services provided secured debt financing for the acquisition.

MedCore Partners developed the two-story building located at 1240 Mckee Road for Post Acute Medical between 2017 and 2019. The sole-tenant, 34-bed rehabilitation center, which is fully leased to PAM, includes an inpatient and outpatient gym, a radiology suite, laboratory services and a full dietary department. The facility is the only IRF in Kent County and one of four IRFs in Delaware.

The property is roughly 3 miles northwest of downtown Dover and offers easy access to U.S. 13. Bayhealth Kent General Hospital and Eden Hill Medical Center are both within a 3-mile radius of the facility.

Anchor’s Mervyn Alphonso and Elliott Sellers spearheaded the buyers’ efforts in closing the transaction. According to CIO James Schmid, the Dover asset represents the company’s sixth acquisition this year.

Earlier this month, in an interview for Commercial property ExecutiveHarrison Street Real Estate Capital’s Co-Founder & CEO Chris Merrill shared investment strategies for his company, highlighting how a close relationship with long-time partners plays a key role in maintaining a strong flux of investment.