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