Orlando-based Majors Investments has sold three medical office complexes to a Milwaukee real estate investment trust, in a relationship that will likely result in more sales.
Most recently, Majors sold six Class-A buildings in Medical Village Maitland (a condominium) for $23.2 million, according to a deed recorded Wednesday in Orange County.
The buyer was Physicians Realty Trust, a Milwaukee-based REIT with a market capitalization of $2.9 billion. The company specializes in medical offices buildings, which make up 96 percent of the company's portfolio.
Deeni Taylor, executive vice president for investments with Physicians Realty, told GrowthSpotter the REIT has a "relationship" with Majors Investments that has resulted in three acquisitions and at least two more to come.
In addition to Medical Village Maitland, Physicians Realty has purchased Medical Village at Kissimmee and Medical Village Leesburg. Taylor said there will be several more deals with Tim Majors, principal of Majors Investments.
"We were fortunate enough to be introduced to Tim Majors," Taylor said. "We like the concept, the buildings and this is one of about five properties we plan to own through this relationship."
Majors set up the condominium association at Medical Village Maitland in June 2015. He started renovating the property in the spring of that year with Sunshine Medical Construction handing the work. The architect on the project was Dale Parsons.
The property at 7912 Forest City Road consists of eight condominium buildings built in 2007 and located in Maitland Center, a large suburban office park. Just six of the buildings, totaling 82,032 square feet, were sold to Physicians Realty Trust.
Majors Investments specializes in buying distressed strip malls and other commercial properties that can be rehabilitated, leased up and sold. The company has developed 12 properties in the Central Florida area under its MedicalVillages real estate division.
One of Majors' more-recent local projects involved buying a vacant commercial building in Winter Garden in May 2015 for $2.2 million. He spent $2 million rehabilitating the property, then sold it in November for $5.4 million.
Physicians Realty Trust (NYSE:DOC) is a self-managed healthcare real estate investment trust that acquires, owns and manages healthcare properties that are leased to physicians, hospitals, healthcare delivery systems and other healthcare providers. The company likes to buy and manage properties on a campus with a hospital or strategically located and affiliated with a hospital or physician organization.
In addition to the Medical Villages in Maitland, Kissimmee and Leesburg, the company also owns a medical office building in Avalon Park. But Taylor said the group is not through.
"We want to own property in Orlando obviously," Taylor said. "The demographics as they relate to healthcare and the aging population in Central Florida make Orlando a great market. We are looking to acquire property in that area."