March 29, 2019
New Partnership with Northside Hospital in Atlanta’s Midtown Neighborhood
Northside Hospital made a strategic decision to develop a new, state-of-the-art medical office building (MOB) tower in the heart of Atlanta’s booming Midtown neighborhood. This exciting neighborhood is one of the fastest growing sub-markets in the region and features $3 billion in planned new development, 65,000 daytime workers, and 15,000 residents. With 12 stories and nearly 169,000 square feet, as well as a parking deck totaling over 860 spaces, this new facility marks Northside Hospital’s largest urban location serving Atlanta’s healthcare needs.
As plans advanced for Northside’s newest location, the Hospital sought an experienced, strategic real estate partner to own their development. Northside and RTG leadership turned once again to Physicians Realty Trust. Northside occupies four MOBs owned by Physicians Realty Trust, including the Center Pointe complex in Sandy Springs, Georgia. Physicians Realty Trust was honored to deepen our relationship with Northside through the Midtown project.
Working together, Physicians Realty Trust designed a solution to meet the unique needs and goals of Northside, creating a leasehold interest structure in the MOB subject to a long-term ground lease with the Hospital. The Hospital retained ownership of the parking deck as part of the transaction. The deal was an excellent investment opportunity for Physicians Realty Trust’s shareholders while furthering Northside Hospital’s mission.
Northside Medical Midtown opened its doors for business on July 23, 2018. The property is projected to serve up to 500,000 patients annually through an optimal mix of convenient healthcare services for the residents and commuters of Midtown. The MOB is already a premier destination for high-quality care, with long-term, NNN leases signed with Northside Hospital (79%) and third-party tenancy (21%). Northside uses include perinatal medicine, colon and rectal care, primary care, physical therapy, imaging, oncology, and urgent care. Third-party medical tenants include the specialties of OBGYN, plastic surgery, primary care, gastroenterology, ophthalmology, and a pharmacy.
With excellent street visibility, proximity to Atlanta’s rapid transit system, and easy two-block on/off access to the Interstate 75/85 corridor, this new architectural landmark for healthcare positions Northside Hospital for growth in a thriving urban location. This new Class-A development provides a stable neighborhood anchor, successfully meeting the needs of healthcare providers and ownership. By investing in the future of healthcare delivery, Physicians Realty Trust looks forward to continued partnerships with Northside Hospital in the years to come.
"Our recent acquisition of the brand new Northside Medical Midtown in Atlanta, Georgia, represents the type of strategic acquisition that we believe to best deliver value in today’s market. This transaction not only improves the overall quality of our portfolio, but also expands our strong partnership with Northside Hospital, one of Georgia’s largest and most respected health systems."
— John T. Thomas | President & CEO | Trustee