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Physicians Realty Trust Pays $764M for 15 MOBs
Physicians Realty Trust has acquired 15 Class-A medical office buildings located in eight states through its operating partnership Physicians Realty L.P., comprising approximately 1,460,000 square feet, for approximately $764.3 million. The Milwaukee-based company, which trades as DOC on the New York Stock Exchange, expects to close the acquisitions in the fourth quarter.
The portfolio is approximately 95% leased with a weighted average remaining lease term of approximately 7.4 years. Each of the 15 buildings are either located on a health system campus or are affiliated with a health system, and approximately 74% of aggregate leased space is attributable to investment-grade health systems or their subsidiaries.
At closing, DOC expects to fund the pending acquisitions through the issuance of units of the operating partnership, the assumption of indebtedness on certain properties, the satisfaction of existing mezzanine loans outstanding, and proceeds from its unsecured line of credit.
- ◦Sale/Acquisition
