Physicians Realty Trust, a Milwaukee-based health care real estate investment trust, has used the proceeds of its recent IPO to complete the $40 million acquisition of a surgical hospital and adjacent medical office building in El Paso, Texas.
Following its model, PRT has leased the building back to Foundation Surgical Hospital of El Paso LLC. The medical practice is a joint venture owned by Foundation Surgical Hospital Affiliates LLC and more than 60 physicians. It is a subsidiary of Oklahoma City-based Graymark Healthcare Inc.
The hospital comprises 77,000 square feet, with 40 acute care beds and six operating rooms, and the medical office building next door has about 40,000 square feet of rentable space.
“We have an outstanding hospital and world class medical staff partners devoted to the highest quality of care and patient service and satisfaction,” said Tom Michaud, founder of Foundation and chairman of Graymark. “We are excited to partner with Physicians Realty Trust. The Company understands and appreciates our clinical care and business model, which puts the physician in control of patient care, and our combined opportunity for tremendous success in the El Paso, Texas market. We have known and worked with John Thomas for more than 10 years, and he shares our passion and commitment to partnering with physicians to create an outstanding patient experience.”
PRT has secured a new 15-year absolute-net lease for the hospital and a new five-year triple-net lease for the rentable office space.
“We are so pleased to partner with the physicians and the Foundation team in El Paso,” said John Thomas, president and CEO of PRT. “This is a high quality health care facility, where the physicians and other caregivers are providing outstanding services and care to their patients. We look forward to exploring future opportunities to work with Tom Michaud, Stanton Nelson, and Foundation’s President, Bob Byers, and their physician partners across the United States.”
PRT also recently secured a $75 million line of credit and entered into a definitive agreement to purchase the real estate leased to LifeCare Hospitals of North Texas LP, a subsidiary of national acute care provider LifeCare Hospitals LLC.
