Physicians Realty Trust completed record $1.4 billion in investments this year

Health care REIT has acquired seven facilities since November

health care system

Last updated on May 15th, 2019 at 04:54 pm

Milwaukee-based Physicians Realty Trust, a self-managed health care real estate investment trust, announced it has completed more than $1.4 billion in investments this year.

John Thomas, president and chief executive officer of Physicians Realty Trust, said it marks a record level of growth for the company. The company, founded in 2014, has grown rapidly by buying and leasing back medical facilities to health care providers.

health care system

Since November, the company has acquired seven medical office facilities and purchased the remaining ownership interest in a medical office facility it partially owned for an aggregate purchase price of about $356.8 million.

The company completed the sale of a medical office building in Nebraska for about $2.5 million on Dec. 18, recognizing a gain on the sale of approximately $800,000.

Other recent acquisitions include:

  • A 187,500-square-foot facility in Indianapolis for a purchase price of $60.1 million. The facility is 100 percent leased to St. Vincent’s Health, a ministry of Ascension Health Alliance.
  • A 58,870-square-foot medical office facility in Apple Valley, Minnesota, for a purchase price of $21.5 million. The multi-tenant facility is anchored by Allina Health System.
  • A 59,894-square-foot medical office facility on the campus of Dignity Health’s St. Joseph Medical Center in Glendale, Arizona, for a purchase price of $15.8 million. The new multi-tenant facility is 100 percent leased to St. Joseph’s Medical Center or affiliates of Dignity Health.
  • The company purchased the remaining 57 percent ownership interest of a 22,948-square-foot medical office facility in Scottsdale, Arizona. The company purchased 43 percent of the membership interests in October 2016. The  two-building multi-tenant facility is 100 percent leased and primarily occupied by the Surgery Center of Scottsdale.

“We have now completed all investments previously announced and scheduled to close in 2017, and we are very excited about the high quality nature of all of these acquisitions, especially the amount of space leased to investment-grade tenants like Dignity Health, Allina Health System, and their co-owned affiliates,” Thomas said.

The company will release its fourth quarter financial results on Feb. 28, 2018.

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