Scottsdale-based Healthcare Trust of America announced the execution of agreements to acquire a portfolio of nine medical office buildings in New York, Massachusetts, and Florida for approximately $196,645,000. Each closing is subject to the satisfaction of a number of conditions.
The 98% leased, nine-building Class A medical office portfolio consists of approximately 960,000 square feet of both on and off-campus MOBs with a weighted average remaining lease term of seven years. The portfolio includes both single-tenant and multi-tenant properties in Albany, N.Y.; North Adams, Mass.; and Temple Terrace, Fla.
The portfolio has an average building age of eight years and includes prominent tenants such as: Catholic Health East (Moody’s: ‘A1’), Health Quest (Moody’s: ‘A3’), The State University of New York (Moody’s: ‘Aa3’), Berkshire Health Systems (Fitch: ‘BBB+’), LabCorp of America (Moody’s: ‘Baa2’), US Oncology, and Community Care Physicians.
“This transaction continues our corporate focus to acquire high quality MOBs with significant occupancy and strong credit tenants located in strategic locations with dominant healthcare systems,” said Mark D. Engstrom, Executive Vice President of Acquisitions for HTA. “We have worked hard at establishing strong relationships in the healthcare industry. With such relationships we have been able to timely identify and act on opportunities to acquire quality portfolio assets.”
Since January 1, HTA has acquired approximately $344.5 million in medical office and health care related assets based on acquisition price. These acquisitions involve approximately 1.5 million square feet of gross leasable area, which is approximately 98 percent leased.