Physicians Realty Trust to purchase medical office building portfolio for $764 million

Baptist Medical Center in Jackson, Mississippi. Photo credit: Landmark Healthcare Facilities
Baptist Medical Center in Jackson, Mississippi. Photo credit: Landmark Healthcare Facilities

Last updated on October 7th, 2021 at 08:56 am

Milwaukee-based health care real estate company Physicians Realty Trust announced that it has reached an agreement to purchase 15 “class A” medical office buildings, with a total of 1.46 million square feet of space, from Milwaukee-based health care facilities developer Landmark Healthcare Facilities LLC for approximately $764.3 million.

The company expects that the transaction will be completed in the fourth quarter of this year.

The portfolio is approximately 95% leased with a weighted average remaining lease term of approximately 7.4 years, the company said. Each of the 15 buildings are either located on a health system campus or are affiliated with a health system.

Upon closing, the first-year unlevered cash yield of the portfolio is expected to be 4.9%, the company said.

None of the buildings in the portfolio are located in Wisconsin. The properties in the portfolio include:

  • University of Florida Health North medical office building (MOB), Jacksonville, Florida, 200,583 square feet
  • Jackson Baptist Medical Center – Belhaven, Jackson, Mississippi, 164,186 square feet
  • Burns POB (professional office building), Petoskey, Michigan, 141,205 square feet
  • TGH Brandon Healthplex, Brandon, Florida, 121,834 square feet
  • Beaumont POB, Sterling Heights, Michigan, 100,490 square feet
  • Lafayette MOB, Lafayette, Louisiana, 99,055 square feet
  • Beaumont Health and Wellness Center, Rochester Hills, Michigan, 94,572 square feet
  • Hospital Hill MOB, Kansas City, Missouri, 90,156 square feet
  • Raritan Bay Medical Center, Old Bridge, New Jersey, 89,159 square feet
  • Saint Vincent MOB, Erie, Pennsylvania, 85,582 square feet
  • Riverside MOB, Hampton, Virginia, 81,312 square feet
  • Bay City MOB, Bay City, Michigan, 73,453 square feet
  • Beaumont Grosse Point MOB, Grosse Pointe, Michigan, 57,040 square feet
  • Yulee MOB, Yulee, Florida, 36,045 square feet
  • Deltona MOB, Deltona, Florida, 24,972 square feet

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Andrew is the editor of BizTimes Milwaukee. He joined BizTimes in 2003, serving as managing editor and real estate reporter for 11 years. A University of Wisconsin-Madison graduate, he is a lifelong resident of the state. He lives in Muskego with his wife, Seng, their son, Zach, and their dog, Hokey. He is an avid sports fan and is a member of the Muskego Athletic Association board of directors.

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