Old Bridge Medical Office Building | Old Bridge, NJ
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.”

Press Release ›

100%

on-campus or Health System Affiliated

4.9%

first-year unlevered cash yield

95%

Leased

75%

Investment
Grade

As of December 20, 2021

Landmark portfolio

TGH Brandon Healthplex

10740 Palm River Road | Brandon, FL
Space: 121,834 GLA

Anchor Health System & Credit Rating
Tampa General Hospital (Fitch: ‘A’)

UF Health North Medical Office Building

15255 Max Leggett Pkwy. | Jacksonville, FL
Space: 200,583 GLA

Anchor Health System & Credit Rating
UF Health-Jacksonville (Fitch: ‘BBB-‘)

YULEE Medical Office Building

251 Breezeway Street | Yulee, FL
Space: 36,045 GLA

Anchor Health System & Credit Rating
UF Health-Jacksonville (Fitch: ‘BBB-‘)

JAMES DEVIN MONCUS MEDICAL BUILDING

4809 Ambassador Caffery Pkwy | Lafayette, LA
Space: 99,055 GLA

Anchor Health System & Credit Rating
Franciscan Missionaries of Our Lady Health System (S&P: ‘A’)

Bay City Medical Office Building

4 Columbus Ave. | Bay City, MI
Space: 73,453 GLA

Anchor Health System & Credit Rating
McLaren Health Care (Fitch: ‘AA-‘)

BEAUMONT GROSSE POINTE MEDICAL OFFICE BUILDING

16815 E. Jefferson Ave. | Grosse Pointe, MI
Space: 57,040 GLA

Anchor Health System & Credit Rating
Beaumont Health (S&P: ‘A+’)

BURNS PROFESSIONAL OFFICE BUILDING

560 W. Mitchell St. | Petoskey, MI
Space: 141,205 GLA

Anchor Health System & Credit Rating
McLaren Health Care (Fitch: ‘AA-‘)

Beaumont Health and Wellness Center

1555 South Boulevard East | Rochester Hills, MI
Space: 94,572 GLA

Anchor Health System & Credit Rating
Beaumont Health (S&P: ‘A+’)

Beaumont Physician Office Building

44344 Dequindre Rd. | Sterling Heights, MI
Space: 100,490 GLA

Anchor Health System & Credit Rating
Beaumont Health (S&P: ‘A+’)

HOSPITAL HILL MEDICAL OFFICE BUILDING I

2101 Charlotte Street | Kansas City, MO
Space: 90,156 GLA

Anchor Health System & Credit Rating
Truman Medical Center (Kroll: ‘BBB+’)

JACKSON BAPTIST MEDICAL CENTER - BELHAVEN

1200 N. State St. | Jackson, MS
Space: 164,186 GLA

Anchor Health System & Credit Rating
Baptist Memorial Health Care (S&P: ‘BBB+’)

Old Bridge Medical Office Building

2 Hospital Plaza | Old Bridge, NJ
Space: 89,159 GLA

Anchor Health System & Credit Rating
Hackensack Meridian Health (S&P: ‘AA-‘)

SAINT VINCENT MEDICAL OFFICE BUILDING

2315 Myrtle Street | Erie, PA
Space: 85,582 GLA

Anchor Health System & Credit Rating
Allegheny Health Network (S&P: ‘A’)

Riverside Medical Office Building

850 Enterprise Pkwy. | Hampton, VA
Space: 81,312 GLA

Anchor Health System & Credit Rating
Riverside Health System

"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.

John T. Thomas

President & Chief Executive Officer, Trustee

Jeffrey N. Theiler

EVP, Chief Financial Officer

D. Deeni Taylor

EVP, Chief Investment Officer

Mark D. Theine

EVP, Asset Management

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