$13.4 million rehab facility to be constructed

Construction of a new $13.4 million rehab facility will begin this May in west Bloomington, financed by Mainstreet Property Group and a crowdfunding source.

Mainstreet is the nation’s largest developer of short-stay rehab facilities, according to a press release. Short stay is typically defined as 30 days or less.

“The goal of the facility is to get patients well and get them home,” said Kate Snedeker, a spokesperson for Mainstreet.

The facility will be located at 5553 W. State Road 48. Mainstreet hopes the rehab design will create a hotel-like environment that makes its patients feel comfortable and engaged, Snedeker said.

The facility, which has not yet been named, is designed to be 66,197 square feet with 100 suites and a number of other rooms for a variety of services.  

About 90 percent of the rooms will be single bedrooms with private bathrooms. The facility will also have a rehab center, movie theater, game room and walking trails.
There will be an onsite chef as well as a few restaurants for patients to enjoy.

“It is a completely new concept in health care,” Snedeker said. “We refer to it as a Medical Resort.”

But what’s most different about Mainstreet is the means by which it’s financing the facility. Bank financing will cover more than $10 million of the $13.4 million. Mainstreet will contribute $1.8 million and CrowdStreet, which uses a crowdfunding platform, will contribute $1.5 million.

“Mainstreet is excited about this new and innovative way to raise capital,” Snedeker said. “Mainstreet has worked with various capital sources in the past and is constantly looking for new ways to raise capital.”

In conjunction with CrowdStreet, Mainstreet will be giving investors the opportunity toreview the project and give capital directly through a secure website.

“Consistent with our mission to think differently, innovate and transform industries, Mainstreet is among the first to offer private real estate investment opportunities directly to the public,” Zeke Turner, founder and CEO of Mainstreet, said in a press release.

Turner said he hopes direct investment initiatives will not only provide better funding for projects, but also give people a better opportunity to access and contribute to these projects.

“Our goal is to connect accredited investors with high-quality, professionally-managed real estate investments,” Darren Powderly, co-founder of CrowdStreet, said in a press release. “The Mainstreet team has a proven business model and a track record of success.”  

Snedeker said she and the Mainstreet team hope the project will be a way for accredited investors to partner with Mainstreet in a “compelling investment opportunity.”

As for IU students, Snedeker said the project could provide internship
opportunities for marketing, nursing, medical administration and culinary services.

“The health care industry is constantly evolving,” Snedeker said. “Where and how patients receive care is changing and will continue to change. We believe this facility will serve a gap in the current market.”