Twain Financial Partners Provides $27 Million in Ground Lease Financing for St. Louis Hospital

February 22, 2022

In December 2021, Twain closed on $27 million of ground lease capital that will help complete a hospital modernization project in St. Louis, Missouri. At the financial closing, Twain purchased the land underneath the hospital and leased it back to the sponsor team for a 99-year term. Unlike traditional ground leases, the Twain ground lease gives sponsors the option to repurchase the land from Twain at a predetermined price within a few years of the closing.

When complete, the 150-year old former St. Alexius Hospital will highlight a remodeled CT room, cafeteria, psychiatric care department and radiology room. Additional upgrades will be implemented in the intensive care unit, hospital lab, nuclear medicine department and cardiovascular department. Physical plant infrastructure projects will include a lighting upgrade, electrical work, water fixture upgrade, elevator modernizations and HVAC and building automation system upgrades.

The modernization initiative stems from SA Hospital Acquisition Group’s purchase of the hospital in January 2021. The company consists of a small group of veteran healthcare leaders with proven track-records of acquiring and operating health care facilities throughout the United States, including short-term acute-care hospitals. That experience has led to improvements in both the quality of patient care and the financial stability of its healthcare facilities.