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 Weiland 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, Weiland is a lifelong resident of the state. He lives in Muskego with his wife, Seng, and son, Zachary. He is an avid sports fan and enjoys coaching his son’s youth baseball and basketball teams.

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