14 Medical Office Facilities Acquired in 11 Metro Markets, Totaling over 1,400,000 Rentable Square Feet
Physicians Realty Trust (NYSE: DOC) (the “Company,” the “Trust,” “we,” “our” and “us”), a self-managed health care real estate investment trust, announced today that it closed the previously announced pending purchase of medical office facilities from Landmark Healthcare Facilities LLC (“Landmark”). The transaction included 14 Class-A medical office buildings located in eight states, comprising 1,434,672 square feet, for an aggregate purchase price of approximately $750.0 million and an expected first-year unlevered cash yield of 4.9%.
- 14 medical office facilities totaling 1,434,672 rentable square feet and 95% leased
- Each facility is located on the campus of a hospital or affiliated with a health system
- 75% of aggregate leased space is leased to investment-grade health systems or their subsidiaries
- First-year unlevered cash yield of the portfolio is expected to be 4.9%
John T. Thomas, President and Chief Executive Officer of the Trust, commented, “Landmark’s high-quality portfolio of medical office facilities is a significant expansion of DOC’s national medical real estate footprint. It’s also a testament to the long-standing relationship between DOC and Landmark’s leadership—a combination of cultures committed to developing and owning medical office facilities leased to the leading health care providers in the communities they serve. We are honored Landmark chose Physicians Realty Trust to hold ownership of these 14 mission-critical medical office buildings, establishing 10 new DOC health system relationships for future investment opportunities. Our team has worked closely with Landmark in each market over the past year to complete this partnership. We look forward to working with Landmark on future opportunities to develop medical office facilities and welcome them as a significant stakeholder in DOC as part of this transaction.”
One property subject to the Company’s previously announced transaction agreements will not be contributed to DOC, as the tenant health care system elected to exercise their Right of First Refusal. This asset, totaling 24,972 GLA, had been under contract for a purchase price of $14,250,000.
Learn more about this acquisition at https://www.docreit.com/landmark.
About Physicians Realty Trust
Physicians Realty Trust is a self-managed health care real estate company organized to acquire, selectively develop, own and manage health care properties that are leased to physicians, hospitals and health care delivery systems. The Company invests in real estate that is integral to providing high quality health care. The Company is a Maryland real estate investment trust and has elected to be taxed as a REIT for U.S. federal income tax purposes. The Company conducts its business through an UPREIT structure in which its properties are owned by the Operating Partnership, directly or through limited partnerships, limited liability companies or other subsidiaries.
About Landmark Healthcare Facilities
Landmark Healthcare Facilities LLC provides all the professional services that are required to design, develop, construct and manage the complete range of outpatient buildings. Landmark develops outpatient buildings for the ownership of Landmark and the ownership of healthcare providers that become clients.
Landmark operates nationwide -- from Landmark’s headquarters office in Milwaukee, Wisconsin and 14 regional offices in 10 states. Landmark is family-owned and family-controlled. Joe Checota, Chairman of Landmark and Ben Checota, Senior Vice President for Business Development, own Landmark.
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