BNL Acquisition: Arkansas Surgical Hospital

Broadstone Net Lease has acquired a property tenanted by Arkansas Surgical Hospital (ASH) via an UPREIT transaction, (where “UPREIT” stands for Umbrella Partnership REIT). UPREIT transactions provide a tax deferred exit strategy for owners of real estate who would otherwise recognize a significant taxable gain in a cash sale of a highly appreciated property with a low tax basis.

Located in North Little Rock, Arkansas, ASH is a short-term acute care surgical hospital that specializes in joint replacement and spinal procedures. By contributing the property into the operating partnership of Broadstone Net Lease‚ the prior owners were able to exchange low cost-basis real estate for an interest in a professionally managed portfolio that is diversified by geography, property type, tenant, and lease duration.

  • Closing Date: November 23, 2015
  • Square Footage: 125,909
  • Lease Type: Triple-net
  • Lease Length: 15 years
  • Rent Increases: 2.50%
  • Broker/source: Chris Stai, Brown Gibbons Lang & Co.

Note: The brand listed may not represent BNL’s actual tenant but a lease guarantor, tenant franchise or a D/B/A (doing business as).