Milwaukee, Wisconsin-based Physicians Realty Trust announced that it had completed the purchase of a portfolio of four medical office buildings in the Phoenix area for $140.882 million, or $346.23 per foot blended average. The sellers in four separate cash sales were companies formed by Integrated Medical Services in Phoenix, a physician led (by Dr. John Dover) and managed organization. Newmark Grubb Knight Frank in Phoenix brokered the deal; terms were not disclosed, but according to NGKF, the $346.23 per foot average sets the record in the Phoenix Metropolitan for the highest price per foot ever paid for an on-campus, multi-tenant medical office building portfolio. Physicians Realty Trust represented itself in this transaction.
The properties in the portfolio include:
• Paradise Valley Medical Center, 3815 E. Bell Road, Phoenix
• North Mountain IMS Medical Building, 9250 N. Third St, Phoenix
• Avondale IMS Medical Building, 10815 W. McDowell Rd., Avondale
• Palm Valley Medical Office Building, 13555 W. McDowell Rd, Goodyear
The office buildings were developed between 2004 and 2009, and were 96% leased at the time of sale, according to a Phoenix Business Journal article. Three of the buildings are also located on hospital campuses, a premier spot for any medical office property. Dover said the sale gives the doctors a chance to monetize their assets, adding that the buyer understands the physician's perspective.
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