Physicians Realty Trust has closed on of the purchase and leaseback of a single-tenant medical office building located in Jackson, Mississippi, from MSMOC Properties.
The 44,269 square foot medical office building is 100 per cent occupied by Mississippi Sports Medicine and Orthopaedics, the largest independent orthopaedic group in the Jackson area.
The total purchase price was USD16.7 million with a first year unlevered yield of 7.9 per cent, with the physician owners taking approximately USD1.9 million worth of operating partnership units in the company’s operating partnership, Physician Realty L.P. in exchange for their interest in the building, in addition to net cash proceeds.
In addition, Physicians Realty Trust closed on the purchase of the Carmel Medical Pavilion located on the St. Vincent Health Carmel Campus in the Indianapolis suburb of Carmel, Indiana. The Pavilion comprises 28,572 square feet and is fully leased to physicians, providers and St. Vincent Health-Carmel. The Carmel Medical Pavilion is located on ground that is leased long term from St Vincent Carmel-Ascension Health. Ascension Health is the largest Catholic, mission-driven, not for profit health care system in the US.
The total purchase price was approximately USD4.7 million with a first year unlevered yield of 7.25 per cent, with the owners of the building taking approximately USD1.3 million of the net proceeds in Physician Realty L.P. in exchange for their interest in the Carmel Medical Pavilion.
“The Mississippi Sports Medicine and Orthopaedics Center is a fantastic addition to our portfolio and we look forward to working with this group of leading orthopaedic surgeons for years to come. We are also very pleased with the opportunity to work with St. Vincent’s and acquire important medical real estate leased to a top 100 hospital in the US located in a community selected in 2012 as the Best Place to Live in America by CNN Money Magazine. Both of these investments are consistent with our long-term strategic goals of building a portfolio of high quality medical office buildings leased to the top tier physicians and providers,” says John T. Thomas, CEO of Physicians Realty Trust.