Physicians Realty Trust JV Buys Brooklyn Medical Center for $82M

Physicians Realty Trust acquired Calko Medical Center through a joint venture with MedProperties Realty Advisors, paying $81.5 million for the Brooklyn, NY-based facility. Built in 2013, the 85,567-square foot property is anchored by Maimonides Medical Center and physicians associated with Maimonides. It is 100% leased and occupied. The REIT owns 90% of the joint venture, with MedProperties owning the remaining 10%. The stabilized cash yield on the investment is 5.5%.

This building is anchored by the Brooklyn Surgery Center, which is a joint venture with physicians and Maimonides Medical Center. In addition to the surgery center, the purpose-built medical facility is home to an urgent care center, an orthopedic department, a pain management center, a pathology lab, a fertility clinic, and 30,000 square feet of private physician office space. The facility also includes one of the largest endoscopy programs in the country, with the latest imaging equipment and a state-of-the-art radiology department.

The property is currently 100% leased through 14 NNN leases with a weighted average remaining term of approximately 7 years. Major tenants include Maimonides Medical Center (31% GLA), Brooklyn Surgery Center (25% GLA), and RadNet Imaging (11% GLA).