Encompass Health buys land for Jacksonville rehab hospital

The system paid $5.2 million for 8 acres in Southside Quarter.

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  • | 12:20 p.m. November 18, 2020
Southside Quarter is along Gate Parkway South of St. Johns Town Center.
Southside Quarter is along Gate Parkway South of St. Johns Town Center.
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Encompass Health paid $5,236,068 for 8 acres in the Southside Quarter for the construction of one of its two Northeast Florida rehabilitation hospitals. 

The Birmingham, Alabama-based health system announced in August it would open a 50-bed rehabilitation hospital in Jacksonville, but did not say where it would be located. It is expected to open in the second half of 2022. 

Encompass Health Rehabilitation Hospital of Jacksonville LLC purchased the property at Gate Parkway and Village Crossing Drive on Nov. 10, according to a deed recorded Nov. 18 with the Duval County Clerk of Courts.

The rehab hospital will care for patients recovering from strokes and neurological disorders; orthopedic, cardiac and pulmonary conditions; brain and spinal cord injuries; and amputations.

Colliers International brokers Jason Ryals, Nancy Sumner and Katy Figg represented the seller, S-15 Land Holdings LLC, controlled by Hines Development. 

Southside Quarter is a mixed-use development on Gate Parkway, west of Interstate 295 near Ikea. It comprises office space, apartments, town houses, restaurant space and medical space. Houston-based Hines is the developer on the project.

Encompass also plans on building a 47,700-square-foot, 40-bed hospital at northwest Silver Lane and Florida 207 in St. Augustine. It will be operational by the first quarter of 2022. 

The St. Johns County Commission approved $786,305 in incentives for that project, which Encompass estimates will cost $30 million to build. 

Encompass also provides home health care in Jacksonville through Encompass Home Health of Jacksonville at 9143 Philips Highway. Those services will be integrated with the hospital. 

It operates or has announced 13 rehabilitation hospitals in Florida. 

Encompass Health Chief Strategy and Development Officer David Klementz said Oct. 6 that with so many acute care facilities in the Northeast Florida market, it made sense to build post-acute care hospitals in the area.

“In that particular market, we saw those as two separate counties with different levels of demand,” he said. “We saw a demand for this level of service in both of those counties.”