Physicians Realty Trust Announces Completion of Landmark Portfolio Acquisition with Total Investment of $ 750 Million
MILWAUKEE – (COMMERCIAL THREAD) – Physicians Realty Trust (NYSE: DOC) (the “Company”, the “Trust”, “we”, “us” and “us”), a self-directed healthcare real estate investment trust, announced today hui that it has completed the previously announced pending purchase of medical facilities from Landmark Healthcare Facilities LLC (“Landmark”). The transaction included 14 Class A medical office buildings located in eight states, comprising 1,434,672 square feet, for an aggregate purchase price of approximately $ 750.0 million and an expected non-leveraged cash return for the first year of 4.9%.
14 medical offices totaling 1,434,672 square feet rentable and 95% leased
Each facility is located on the campus of a hospital or affiliated with a health system
75% of all leased space is leased to top quality healthcare systems or their subsidiaries
The portfolio’s return on unleveraged cash in the first year is expected to be 4.9%
John T. Thomas, Chairman and CEO of the Trust, said, “Landmark’s high-quality portfolio of medical practice facilities is a significant expansion of DOC’s national medical real estate footprint. It is also a testament to the long-standing relationship between DOC and Landmark leadership, a combination of cultures committed to the development and ownership of medical practices leased to major healthcare providers in the communities they serve. . We are honored that Landmark has selected Physicians Realty Trust to own the ownership of these 14 mission critical medical office buildings, establishing 10 new relationships with the DOC Health System for future investment opportunities. Our team has worked closely with Landmark in each market over the past year to secure this partnership. We look forward to working with Landmark on future opportunities to develop medical offices and welcome them as a significant DOC stakeholder in this transaction. ”
A property subject to the transaction agreements previously announced by the Company will not be brought to DOC because the tenant health care system has chosen to exercise its right of first refusal. This asset, totaling 24,972 GLA, was contracted for a purchase price of $ 14,250,000.
Learn more about this acquisition on https://www.docreit.com/landmark.
About Physicians Realty Trust
Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate which is integral to the delivery of high quality health care. The Company is a Maryland real estate investment trust and has elected to be taxed as a REIT for US federal income tax purposes. The Company operates through an UPREIT structure in which its properties belong to the operating company, either directly or through limited partnerships, limited liability companies or other subsidiaries.
About Landmark Healthcare Facilities
Landmark Healthcare Facilities LLC provides all professional services necessary for the design, development, construction and management of the full line of ambulatory buildings. Landmark develops ambulatory buildings for Landmark property and the property of healthcare providers who become clients.
Landmark operates nationwide – from Landmark’s headquarters in Milwaukee, Wisconsin, and 14 regional offices in 10 states. Landmark is family owned and operated by the family. Joe Checota, president of Landmark and Ben Checota, senior vice president of business development, own Landmark.
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in accordance with safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “ plan ”,“ outlook ”,“ continue ”,“ intention ”and“ project ”and other similar expressions which predict or indicate future events or trends or which are not statements of historical matters. These forward-looking statements may include statements regarding the strategic and operational plans of the Company, the ability of the Company to generate internal and external growth, future prospects, expected cash yields, capitalization rates or returns on properties, the early closing of real estate acquisitions, the ability to execute its business plans and the impact of the COVID-19 pandemic on the Company’s operations. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Forward-looking statements should not be interpreted as a guarantee of future performance or results, and will not necessarily be precise indications of when or by which such performance or results will be achieved. Forward-looking statements are based on information available at the time such statements are made and / or on the good faith belief of management at that time with respect to future events, and are subject to risks and uncertainties. that could cause a substantial difference in performance or actual results. those expressed or suggested by forward-looking statements. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the control of the Company, which could cause actual results to differ materially from these statements. These risks and uncertainties are further described in documents filed by the Company with the Securities and Exchange Commission (the “Commission”), including, without limitation, the annual and periodic reports of the Company and of other documents filed with the Commission. Except as required by law, the Company disclaims any obligation to update any forward-looking statements after the date of this press release, whether as a result of new information, future events or otherwise. For a discussion of factors that could affect the results, performance or transactions of the Company, see Part I, Item 1A (Risk Factors) of the Company’s Annual Report on Form 10-K / A for the year ended December 31, 2020.