Physicians Realty Trust (NYSE:DOC) (the “Company”), through a joint venture with Dallas, Texas based MedProperties Realty Advisors, LLC (“MedProperties”) is proud to announce the closing of the acquisition of Calko Medical Center. This Class-A, free-standing facility, built in 2013, contains 85,567 rentable square feet, anchored by Maimonides Medical Center and physicians associated with Maimonides, and is 100% leased and occupied. The Company owns 90% of the joint venture, with MedProperties owning the remaining 10%. The stabilized cash yield on the investment is 5.5%.
This building is anchored by the Brooklyn Surgery Center which is a joint venture with physicians and Maimonides Medical Center, recently ranked by Newsweek as the 4th best ASC in New York state and the top surgery center in Brooklyn.
In addition to the surgery center, the purpose-built medical facility is home to a state-of-the-art urgent care center, a comprehensive orthopedic department, a pain management center, a pathology lab, a fertility clinic, and 30,000 square feet of private physician office space. The facility also includes one of the largest endoscopy programs in the country, with the latest imaging equipment and a state-of-the-art radiology department.
The property is currently 100% leased through 14 NNN leases with a weighted average remaining term of approximately 7 years. Major tenants include Maimonides Medical Center (31% GLA), Brooklyn Surgery Center (25% GLA), and RadNet Imaging (11% GLA).
John T. Thomas, President and CEO of Physicians Realty Trust, stated “We are excited to partner once again with MedProperties, who sourced this acquisition opportunity and worked with us to complete the transaction. This is a fantastic outpatient medical facility with a health care ecosystem that provides access to exceptional care for the larger Brooklyn population. We look forward to working with Maimonides Medical Center, the physicians, and other providers in this facility for years to come.”
About Brooklyn Surgery Center
Brooklyn Surgery Center is a modern, state-of-the-art, multispecialty surgery center providing expert medical care in the heart of Brooklyn. The main surgical specialties are Gastroenterology and Orthopedics, but other specialties include General Surgery, Colorectal Surgery, Podiatry, Pain Management, Plastic Surgery, Urology, In vitro Fertilization / Gynecology Procedures, and Pediatric Urology.
About Maimonides Medical Center
Maimonides Medical Center is a health system operating three nonprofit hospitals in Brooklyn, New York generating $1.3 billion in annual revenue. In addition, Maimonides' FHA bonds carry an S&P rating of 'AA+'. It has been rated a Top 10 Hospital in the Nation for Clinical Excellence according to data published by the U.S. Centers for Medicare & Medicaid Services. Services offered at the subject property include Orthopedics, Gastroenterology, OBGYN & Fertility, Pediatrics, Pathology & Lab, and PT & Rehab.
About Physicians Realty Trust
Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing high quality healthcare. 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 MedProperties Realty Advisors, LLC
MedProperties Realty Advisors, LLC is a Dallas-based healthcare real estate private equity firm that invests on a direct and an indirect basis (through joint venture relationships) in the development of new, value-add, and stabilized healthcare real estate, including multitenant medical office buildings and single-tenant, specialty healthcare facilities throughout the U.S. MedProperties invests through its discretionary funds, and through stand-alone investment vehicles. MedProperties is dedicated solely to investments in healthcare real estate. For further information on MedProperties, please visit www.medpropertieslp.com.
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, “continue”, “intend”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward looking statements may include statements regarding the Company’s strategic and operational plans, the Company’s ability to generate internal and external growth, the future outlook, anticipated cash returns, cap rates or yields on properties, anticipated closing of property acquisitions, ability to execute its business plan, and the impact of the COVID-19 pandemic on the Company’s business. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties are described in greater detail in the Company’s filings with the Securities and Exchange Commission (the “Commission”), including, without limitation, the Company’s annual and periodic reports and other documents filed with the Commission. Unless legally required, the Company disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events or otherwise. For a discussion of factors that could impact the Company’s results, performance, or transactions, see Part I, Item 1A (Risk Factors) of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.