Physicians Realty Trust Acquires 20 MOBs for $305 Million
Physicians Realty Trust (NYSE: DOC), a self-managed health care real estate investment trust (REIT) based in Milwaukee, Wisconsin, has closed the second tranche of its previously announced pending purchase of medical office buildings from Catholic Health Initiatives (CHI), a nonprofit health system based in Englewood, Colorado.
The second tranche included 20 medical office buildings purchased from CHI between June 2 and June 30 for about $305 million in total.
Physicians Realty Trust’s total investment in CHI-affiliated properties acquired to date, including the previously announced closing of tranche one, adds up to $628 million.
“We have worked closely with our colleagues at Catholic Health Initiatives to complete almost all of our investment in these CHI mission-critical medical office buildings,” Physicians Realty Trust President and CEO John T. Thomas said in a press release. “Except for one project that is currently under construction, we expect the closing of the remainder of the portfolio to occur early in the third quarter of 2016, with all of the previously announced CHI affiliated acquisitions to be completed by the end of the third quarter, but we cannot provide any assurance that these follow-on acquisitions will be completed.”
Physicians Realty Trust completed multiple other acquisitions beyond the CHI investments this quarter, Thomas added. These were mainly off-market acquisitions of buildings affiliated with or leased to existing health care system clients.
“This is by far the largest quarter for investments by Physicians Realty Trust,” Thomas said.
Physicians Realty Trust currently has more than $2.5 billion in real estate assets, containing about 10 million square feet, with industry-leading occupancy, Thomas added.
CHI currently operates in 19 states and comprises 103 hospitals, including four academic health centers and major teaching hospitals, as well as 30 critical-access facilities; accredited nursing colleges; community health-services organizations; home-health agencies; living communities; and other services and facilities that span the inpatient and outpatient continuum of care.
Written by Mary Kate Nelson