Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and Contingencies

Legal Proceedings

The Company is, from time to time, involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

Redevelopment Activity

During the second quarter of 2021, the Company continued the redevelopment of 110,860 square feet of a 217,114 square foot medical office building in Dallas, Texas. As of June 30, 2021, the Company had funded approximately $0.5 million in project costs. The building continues to operate with in-place leases during construction. The first new tenant lease of the redevelopment is expected to commence in the first quarter of 2022.

During the second quarter of 2021, the Company continued the redevelopment of a 110,883 square foot medical office building in Memphis, Tennessee. As of June 30, 2021, the Company had funded approximately $28.1 million in project costs. The core and shell portion of this redevelopment was completed and the first new tenant took occupancy in the first quarter of 2021, with the construction of tenant spaces to be completed throughout the remainder of 2021.

In April 2021, the Company began the redevelopment of a medical office building in Tacoma, Washington. As of June 30, 2021, the Company had funded approximately $1.3 million in project costs. The redevelopment includes interior and exterior improvements to the existing building, plus the addition of 23,000 square feet. The Company expects the tenant lease for the expansion space to commence in the second quarter of 2022.

In July 2021, the Company began the redevelopment of a medical office building in Nashville, Tennessee. The Company expects to construct a new 106,194 square foot medical office building with the initial tenant lease expected to commence in the second quarter of 2023. The redevelopment includes the demolition of an existing 81,000 square foot medical office building. In the second quarter of 2021, the Company recognized an impairment charge of $5.0 million related to the existing building.