Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Acquisitions and Divestitures

(4) Acquisitions and Divestitures    

During the second quarter of 2021 and during the fourth quarter of 2021, we completed three transactions as described below utilizing qualified third-party intermediaries, as part of a series of anticipated tax-deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code.

Subsequent to September 30, 2021:

In July, 2021, as a part of the series of tax-deferred like-kind exchange transactions mentioned above, we entered into an agreement to sell the Auburn Medical Office Building II.  On November 1, 2021 we settled on the sale of the Auburn Medical Office Building II, a multi-tenant MOB located in Auburn, Washington to a non-related party for a sale price of approximately $25.1 million.  The gain on this divestiture will be included in our consolidated statement of income for the three and twelve-month periods ended December 31, 2021.  The assets and liabilities related to this property are included in “Assets of property held for sale” or “Liabilities of property held for sale” on our consolidated balance sheet as of September 30, 2021.

Nine Months Ended September 30, 2021:

Acquisition:

In May, 2021, as a part of the series of tax-deferred like-kind exchange transactions mentioned above, we acquired the Fire Mesa office building located in Las Vegas, Nevada for a purchase price of approximately $12.9 million. The building, which has approximately 44,000 rentable square feet, is 100% leased under the terms of a triple net lease with a wholly-owned subsidiary of UHS.  The lease on this building is scheduled to expire on August 31, 2027 and has two five-year renewal options.

Divestiture:

In June, 2021, as a part of the series of tax-deferred like-kind exchange transactions mentioned above, we sold the Children’s Clinic at Springdale, a medical office building located in Springdale, AR for a sale price of approximately $3.2 million, net of closing costs. This divestiture resulted in a gain of approximately $1.3 million which is included in our consolidated statement of income for the nine-month period ended September 30, 2021.  

Nine Months Ended September 30, 2020:    

Acquisitions:

There were no acquisitions during the first nine months of 2020.  

Divestitures:    

There were no dispositions during the first nine months of 2020.