Physicians Realty Trust, a self-managed healthcare properties REIT, announced the partial closing of the 309,865 square foot Columbus Regional Medical Office Portfolio which includes thirteen medical office buildings, twelve of which are located in Columbus, Georgia and one in Phenix City, Alabama. The Portfolio is 88% occupied and approximately 86% (11 of the 13 properties) of the portfolio’s total rentable square footage is located adjacent to the 413-bed Columbus Regional Medical Center and the 219-bed Doctors Hospital, two of Columbus Regional Healthcare System’s short-term acute care hospitals. The Portfolio features a diversified mix of healthcare providers anchored by physician practice groups that are affiliated with CRHS and the Columbus Clinic.

CRHS is a market leading healthcare provider with $407 million of in-patient service revenue in 2013. The Columbus Clinic is accredited by the American College of Radiology and is the area’s largest multi-specialty clinic providing primary care, specialty physicians, and ancillary services. As part of the transaction, the CRHS-related leases totaling 45% of the overall Portfolio’s base rental revenue have been renegotiated and extended to 10-year lease terms. The Company has closed on 12 of the 13 buildings, with the final building expected to close by the end of 2014. The total purchase price will be approximately $34.5 million with an anticipated first year unlevered yield of 8.1%.

John Thomas, the Company’s President and Chief Executive Officer, stated, “We are pleased to have the opportunity to work with Columbus Regional to complete a healthcare system medical office building “monetization” and assume responsibility for owning and managing Columbus Regional’s medical office facilities. It is a testament to our commitment to partnering with leading healthcare providers to help them meet the needs of their community and continue our rapid growth toward building a long-term healthcare real estate company. Columbus is Georgia’s second largest city, is home to Fort Benning and AFLAC Insurance and was just included in Livability.com’s 2014 Top 100 Best Places to Live.”

Scott Hill, President and Chief Executive Officer of CRHS stated, "Columbus Regional Health is excited about the opportunity to partner with Physicians Realty Trust as the owner of our medical office properties. Bringing in a partner who specializes in medical office property ownership, management and development is the right move for our health system and the timing is perfect for both parties. We know that Physicians Realty Trust will invest a great deal of time and attention into the physician and provider partners in these medical office buildings." He added, “We are confident in and trust that John Thomas and the Physicians Realty team will be much more than landlords. It is clear they will work closely with CRHS to help us better serve our patients, physicians and visitors while enabling the recruitment of additional physicians and providers into high quality office space that meets the growing healthcare needs of our communities. We appreciate their investment in our organization and look forward to working with them for many years to come."