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Physicians Realty Trust buys Indianapolis MOB for $60M

Physicians Realty Trust paid about $60.1 million to acquire a 187,500-square-foot medical office facility in Indianapolis and picked up three other such facilities in Minnesota and Arizona.

The Indianapolis facility, which the company acquired in November, is fully leased to Ascension Health Alliance's St. Vincent's Health and includes a three-story parking ramp. The company expects to see a 6.1% unlevered yield on this investment in the first year.

In December, Physicians Realty paid roughly $21.5 million for the 58,870-square-foot medical office facility in Apple Valley, Minn. The 100%-leased multitenant facility is anchored by Allina Health System and the investment is expected to have a first-year unlevered yield of about 6.2%.

In Arizona, the company acquired the remaining 57% stake it did not already own in a 22,948-square-foot medial office facility in Scottsdale for an undisclosed sum and a 59,894-square-foot medical office facility in Glendale for $15.8 million.

The Scottsdale facility is mainly occupied by the Surgery Center of Scottsdale and the stabilized first-year unlevered yield on the investment is projected to be about 6.1%. The Glendale facility sits on the campus of Dignity Health's St. Joseph Medical Center, is fully occupied by St. Joseph's Medical Center or affiliates of Dignity Health and is expected to have a stabilized first-year unlevered yield of roughly 7.5%.

The company also sold a medical office building in Nebraska for around $2.5 million, seeing a gain on sale of around $800,000.