Physicians Realty Trust Closes $750M Landmark Portfolio Acquisition

The acquisition adds 14 medical office facilities in 11 markets to the REIT’s portfolio.

Physicians Realty Trust has closed on the previously announced purchase of medical office facilities from Landmark Healthcare Facilities for $750 million. 

The transaction included 14 medical office buildings located in eight states, comprising 1,434,672 square feet. The portfolio is 95% leased and each facility is located on the campus of a hospital or affiliated with a health system. 

This represents the latest in health-care real estate-related acquisitions. Days earlier, KKR Real Estate Select Trust acquired a portfolio of core medical office buildings and ambulatory surgery centers located in seven Sun Belt states.

This asset class has also seen notable demand growth in specialty pharmacy providers, increased activity in the healthcare real estate market for medical office buildings and upbeat, stable activity in the home health and hospice and behavioral health care sectors, according to Irving Levin Associates.

Deal Represents ‘Significant Expansion’

The acquisition represents a significant expansion of Physicians Realty Trust’s medical real estate footprint, CEO John T. Thomas said in prepared remarks. 

“It’s also a testament to the long-standing relationship between Physicians Realty Trust and Landmark’s leadership—a combination of cultures committed to developing and owning medical office facilities leased to the leading health care providers in the communities they serve.