El Paso’s Foundation Surgical Hospital sells for $40M

EL PASO – Physicians Realty Trust has completed the sale-leaseback of the Foundation Surgical Hospital, a surgical hospital and adjacent medical office building located at 1416 George Dieter Dr. The purchase price was $40 million.

The property includes a 77,000-sf, 40-bed acute care facility with six operating rooms and an adjacent medical office building (MOB) with 40,000 rentable sf. The MOB is 100 percent leased by the hospital and is currently subleased by hospital services and physicians of the hospital.

With the acquisition, Physicians Realty Trust and the hospital’s physician group entered into a new 15-year absolute-net lease with respect to the hospital and a new five-year triple-net lease for 100 percent of the rentable space in the medical office building.

Read more at the Wall Street Journal.