MILWAUKEE—One of the newer kids on the block in the healthcarereal estate (HRE) sector is Milwaukee-based PhysiciansRealty Trust (NYSE: DOC), which went public in July2013.

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Despite being a new entry, the real estate investment trust'sexecutives, such as CEO John T. Thomas, have beeninvolved in the sector for decades. As a result, officials say thecompany has plenty of relationships and avenues to help it make HREacquisitions.

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The REIT is certainly off to an active start in 2014, as itrecently spent about $107.4 million on six separatetransactions.

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“As we look to the remainder of 2014, we are very excited aboutthe internal and external growth opportunities, as ourrelationships and physician references continue to grow,” Mr.Thomas said. “With the relationships that we have and the stabilityof the high quality healthcare properties that we have acquired, webelieve there are many avenues available to us to increase valuefor us and our shareholders, with a long-term view to building thisorganization correctly mindful of all of our shareholders,physician and healthcare provider stakeholders, and futureinvestors.”

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Here's a closer look at the recent deals:

  • The acquisition of Peachtree Dunwoody MedicalCenter, a 131,000 square foot multi-tenant MOB inAtlanta's “Pill Hill” district. The purchase price was $36.6million, representing a cap rate of about 7 percent based on theexpected net operating income (NOI) in 2014. The REIT paid for theproperty with cash on hand and paid off existing debt secured bythe building, which is 96 percent occupied and includes, as itslargest tenant, Northside Hospital.
  • The acquisition of four MOBs in the Florida cities ofSarasota, Venice,Engelwood and Port Charlotte. TheREIT paid a total of $17.5 million, a price that represents afirst-year estimated cash yield of 8.3 percent. With a total of44,295 square feet, the PSF works out to $395. The seller was Dr.Alan Porter, an oncologist whose longstanding practice,Porter Radiation Oncology Centers, recently becameaffiliated with Fort Myers, FL-based 21st CenturyOncology.
  • The purchase of four buildings occupied by McDonough,GA-based Eagles Landing Family Practice.The buildings are in the Georgia cities ofMcDonough, Jackson andConyers. The REIT paid $20.8 million for the MOBs,which have a total of about 68,700 square feet of space; the PSFwas $302. Eagles Landing, which entered 15-year leases for thebuildings, has seven locations in cities southwest of Atlanta.
  • An agreement to purchase a 45,200-square foot, 100 percentoccupied MOB in Mishawaka, IN, for $14.9 million.The purchase price represents a first year cash yield of about 7.9percent.
  • The recapitalization of a surgical hospital in SanAntonio. The 46,000 square foot hospital is 100 percentoccupied by Foundation Bariatric Hospital of San AntonioLLC. The price was $18.9 million, or $410 PSF. The REITpaid cash, less about $10.8 million in assumed debt.
  • An agreement to purchase an MOB near the FoundationBariatric Hospital of San Antonio. The price is $6.8million and the seller is Foundation Bariatric Real Estateof Huebner LP.

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