UF Health North Medical Building | Jacksonville, FL
December 20, 2021
Truly a ‘Landmark’ Deal
$750 Million Acquisition of Landmark Healthcare Facilities Portfolio Marks the Largest Single Transaction in Company History.
In health care real estate, strong relationships built on a foundation of mutual respect and trust are often as important as the financial framework when potential transactions are being discussed. So, when Milwaukee-headquartered Landmark Healthcare Facilities decided to partner with another organization to own their 14 Class-A mission-critical medical office buildings, they turned to their long-time collaborators at another Milwaukee-based company, Physicians Realty Trust (NYSE: DOC).
John T. Thomas, President and Chief Executive Officer of Physicians Realty Trust, shared, “We are proud of our greatly expanded partnership with fellow Milwaukee-based real estate company, Landmark Healthcare Facilities. As a result of DOC’s existing relationship and prior work with Landmark, we purchased 100% ownership of the portfolio on an off-market basis.”
Landmark Healthcare Facilities LLC, a leading full-service developer, owner, and manager of outpatient medical office buildings with a national portfolio, was founded in 1995. As an expansion of this partnership, DOC and Landmark will continue to partner in the property and facility management of the portfolio.
The Landmark acquisition closed on Monday, December 20, 2021, establishing 10 new health system relationships for DOC in 11 markets, including the University of Florida Health, Beaumont Health, Hackensack Meridian Health, Baptist Health Systems, McLaren Health Care, and Allegheny Health.
DOC’s ongoing mission is to Invest in better® for our shareholders, health care partners, and communities by cultivating a world-class portfolio of medical office facilities. These Class-A Landmark Healthcare Facilities properties will be tremendous additions for DOC, paving the way for future investment opportunities.
Mark Theine, DOC’s Executive Vice President of Asset Management and team lead for the transaction, agreed, sharing, “This transaction has been years in the making and expands the partnership of two great Milwaukee companies. This trophy portfolio not only adds 10 new hospital relationships to DOC, but also adds 14 medical office facilities that average more than 100,000 square feet in size and are 95% leased, including 75% leased to investment-grade health care systems. We look forward to serving these physicians and health care systems through our award-winning asset and property management platform while providing stable, rising returns for our investors in the years to come.”
Joe Checota, Landmark’s Chairman and Chief Executive Officer, said, “DOC has proven to be a great steward of high-quality medical facilities across the country. We are pleased to continue growing our relationship through future development opportunities while ensuring these facilities will continue to be managed in a way that values the health care providers and patients they serve.”
Mark Eisenmann, Landmark’s EVP of Finance and CFO, said “We are very pleased to pass this portion of Landmark’s portfolio of MOBs to DOC, a company that shares our passion for providing the highest quality MOB space throughout the United States. This transaction represents a continuation and expansion of Landmark’s longstanding partnership with DOC, another outstanding Milwaukee-based company. We are also pleased that this sale enables Landmark to distribute almost $100 million of sale proceeds to the leading health care providers that participated in Landmark’s no-cost ownership program. This is an exceptional result for DOC, Landmark and the health care provider clients of Landmark.”
on-campus or Health System Affiliated
first-year unlevered cash yield
As of December 20, 2021
10740 Palm River Road | Brandon, FL
Space: 121,834 GLA
15255 Max Leggett Pkwy. | Jacksonville, FL
Space: 200,583 GLA
251 Breezeway Street | Yulee, FL
Space: 36,045 GLA
4809 Ambassador Caffery Pkwy | Lafayette, LA
Space: 99,055 GLA
4 Columbus Ave. | Bay City, MI
Space: 73,453 GLA
16815 E. Jefferson Ave. | Grosse Pointe, MI
Space: 57,040 GLA
560 W. Mitchell St. | Petoskey, MI
Space: 141,205 GLA
1555 South Boulevard East | Rochester Hills, MI
Space: 94,572 GLA
44344 Dequindre Rd. | Sterling Heights, MI
Space: 100,490 GLA
2101 Charlotte Street | Kansas City, MO
Space: 90,156 GLA
1200 N. State St. | Jackson, MS
Space: 164,186 GLA
2 Hospital Plaza | Old Bridge, NJ
Space: 89,159 GLA
2315 Myrtle Street | Erie, PA
Space: 85,582 GLA
850 Enterprise Pkwy. | Hampton, VA
Space: 81,312 GLA
"DOC has proven to be a great steward of high-quality medical facilities across the country. We are pleased to continue growing our relationship while ensuring these facilities will continue to be managed in a way that values the health care providers and patients they serve."
— Joseph Checota | Chairman & Chief Executive Officer | Landmark Healthcare Facilities LLC
Contact our Senior Leadership Team
DOC is led by a team of experienced and accomplished individuals. We combine our talents and connections to invest in facilities that are best primed for patient care now and in the future.