Milwaukee-based Physicians Realty Trust has acquired an 18,054-square-foot Brookfield building occupied by Wauwatosa-based Children’s Hospital of Wisconsin for $5.9 million.
The company revealed the sale, completed June 3, in its second quarter earnings report. The medical clinic is at 12635 W. Bluemound Road in Brookfield, in a highly visible shopping center that also contains Target, Starbucks and Trader Joe’s.
Ryan Companies built the new Children’s Hospital primary care facility, and construction was completed within the last month, said Mark Theine, senior vice president of asset and investment management at PRT. PRT purchased the property from Ryan and will lease the entire building to Children’s.
“It’s anchored by a fantastic health care system,” Theine said. “Being a Milwaukee-based company and partnering with one of the top hospitals across the country, having it be in Milwaukee, is a great long-term facility for them and partnership for us.”
PRT’s second quarter net income was $7.2 million, or 5 cents per share, up from $3.3 million, or 4 cents per share, in the second quarter of 2015.
Revenue totaled $53.2 million in the second quarter, up from $29.7 million in the same period a year ago.
The health care real estate investment trust had $2.5 billion in total assets at the end of the second quarter, up from $1.6 billion in the year-ago quarter.
PRT has grown rapidly since its 2013 formation and initial public offering. The trust acquires, selectively develops, owns and manages health care properties that are leased to physicians, hospitals and health care delivery systems. PRT raised $135 million gross in its IPO, after it exercised an overallotment option to offer an additional 1.3 million shares, for a total of 10.4 million shares, based on high demand.
The trust acquired 55 health care properties in 13 states in the second quarter and $680 million in investments, and is on track to complete at least three more acquisitions in the third quarter.
“In just three short years, we have grown from 19 medical office properties valued at about $124 million to more than $2.5 billion of medical office and outpatient care facilities as of today,” said John Thomas, president and chief executive officer of PRT. “This growth is fueled by a strong investor base, excellent physician and other provider relationships, and a team of people dedicated to building and managing a best-in-class medical office portfolio and operating platform.”
