Daniel Corporation to Buy HealthSouth Property
Birmingham, AL, January 23, 2008- HealthSouth Corp. has agreed to sell its corporate campus to Birmingham based Daniel Corporation for $43.5 million. Under the terms of the agreement, Daniel will purchase the 200,000 square-foot corporate headquarters building, the 103-acre corporate campus on which the headquarters sits, the Cahaba Grand Conference Center, the 44,000 square foot distribution center and the 66,000 square foot Riverpoint building and the 19-acre tract of land contiguous to the corporate campus that includes an incomplete 13-story digital hospital building containing almost one million square feet. Under the terms of the deal HealthSouth will retain a 40% participation in any proceeds from the digital hospital.
Lubert-Adler Partners, L.P., a real estate private equity fund specializing in redevelopments through joint ventures with local operating partners, is Daniel Corporation’s equity partner in the deal. The deal is scheduled to close by the end of the first quarter.
Daniel plans to rename and market the campus as an expansion of Grandview. Grandview Corporate Park is an 84-acre master-planned corporate park, developed by Daniel Corporation and sits directly across from the acquired campus on Highway 280. Grandview Corporate Park contains restaurants, over 300,000 square feet of multi-tenant office and approximately 450 hotel rooms.
“We see this acquisition as a great opportunity for Daniel to expand on the already successful Grandview Corporate Park and to grow our real estate portfolio in the Birmingham market” stated Daniel Corporation CEO, Charlie Tickle. “We look forward to working with the new administration at the City of Birmingham and explore options on how to best reposition the unfinished digital hospital. The location and quality of this real estate will provide for tremendous future development opportunities including additional office, hotels, retail and other mixed use projects.”
HealthSouth remains committed to keeping its headquarters in Birmingham and plans to lease back approximately 145,000 square feet of space in two buildings from Daniel. Daniel Corporation also plans to move its Birmingham headquarters to the campus in the second quarter of 2008
About Daniel Corporation
Founded in 1964, Daniel Corporation, www.danielcorp.com, is an innovative, full-service real estate organization engaged in the development, acquisition, and management of commercial office, multi-family, residential, urban mixed-use and senior living properties. Headquartered in Birmingham, Alabama with regional offices in Atlanta, Georgia and Jacksonville, Florida, Daniel currently focuses on markets in the Southeast and Mid-Atlantic states. Over the last three decades, Daniel has developed or acquired more than 8.6 million square feet of office space, more than 8,000 multi-family residences, over 10,000 residential home sites, more than 10,000 acres of land for office parks and master planned communities, including a nationally acclaimed golf and country club, and over 2,000 senior living residences.
About Lubert-Adler Partners, L.P.
Lubert-Adler Partners, L.P. is a real estate private equity firm headquartered in Philadelphia with offices in New York, Los Angeles, Atlanta, Baltimore and Singapore. Lubert-Adler was founded in 1997 and has raised over $6.5 billion of equity across six funds and has invested in over $15 billion of real estate assets to date. Lubert-Adler’s most recent fund – Fund VI – will represent $2.6 billion of equity at final closing and commenced in 2007.
About HealthSouth
HealthSouth is the nation’s largest provider of inpatient rehabilitation services. Operating in 26 states across the country and in Puerto Rico, HealthSouth serves more than 250,000 patients annually through its network of inpatient rehabilitation hospitals, long-term acute care hospitals, outpatient rehabilitation satellites, and home health agencies. HealthSouth strives to be the health care company of choice for its patients, employees, physicians and shareholders and can be found on the Web at www.healthsouth.com.
Media Contact:
Erin A Tapp
(205)-443-4546
3660 Grandview Parkway • Birmingham, AL 35243 • 205.443.4500