Jones Clinic in Springdale sold for $29.6 million in sale-leaseback deal

by Paul Gatling ([email protected]) 1,114 views 

A California-based firm has purchased the 137,379 square-foot Jones Clinic building on the campus of Northwest Medical Center-Springdale for $29.6 million.

HCP Inc., a publicly traded real estate investment trust (REIT), is the new owner of the seven-story building at 601 W. Maple Ave. The purchase price equals $215.73 per square foot.

Community Health Systems Inc. of Franklin, Tenn. was the seller. The sale was part of a deal involving 10 CHS properties acquired by HCP for $163 million. The buildings, with a combined total of 756,183 square feet, are located in five states and support a wide array of diagnostic, medical and surgical services in an outpatient setting for their respective hospitals, according to a news release.

CHS spokeswoman Tomi Galin said the company will apply the net proceeds to pay down debt. The buildings sold are being leased back by CHS and there will be no impact on daily operations. CHS has signed a 50-year ground lease for the Jones Clinic, which was built in 1995.

HCP owns various types of healthcare-related properties throughout the country, including nursing homes and medical office buildings. The company did not immediately return a phone message seeking comment.

CHS is one of the largest publicly traded hospital companies in the United States. Through its subsidiaries it owns, leases or operates 158 affiliated hospitals in 22 states with an aggregate of nearly 27,000 licensed beds.

In addition to NMC-Springdale, the company owns Northwest Medical Center-Bentonville, Siloam Springs Regional Hospital, Willow Creek Women’s Hospital in Johnson and an 80% interest in Northwest Health Physicians’ Specialty Hospital in Fayetteville. Sparks Health System in Fort Smith, Summit Medical Center in Van Buren and Medical Center of South Arkansas in El Dorado are also in CHS’ Arkansas portfolio.

CHS also recently sold a majority ownership interest in its home health and hospice division to a subsidiary of Louisville, Ky.-based Almost Family Inc. for $128 million. That money will also be used to pay down debt, according to the company.

On Nov. 1, CHS reported third-quarter revenue of $4.380 billion, down 9.6% from $4.846 billion for the same period in 2015. Income decreased to a loss of $77 million for the three months ended Sept. 30, 2016.

Shares of Community Health Systems (NYSE: CYH) were trading at $6.54, down 27 cents, or 3.96%, as of mid-morning Thursday (Jan. 12). In the past 52 weeks, the stock has traded between $19.70 and $4.15.