Tag Archives: medical office buildings

Healthcare Trust of America

HTA closes $89M in acquisitions in August

Healthcare Trust of America, Inc. (NYSE:HTA) announced today that it had closed on approximately $89 million of investments in August 2014, increasing its total investment activity to approximately $300 million in 2014. This represents an approximate 10 percent portfolio growth rate year.

These third quarter acquisitions includes two separate investments in medical office buildings (“MOBs”) located in the attractive markets of Westchester County, NY and Charleston, SC. These properties total over 250,000 square feet and were approximately 94% occupied at closing. In addition, the properties are located in or near HTA’s existing key markets, will be operated by HTA’s property management and leasing platform, and are immediately accretive to shareholders.

In Westchester, HTA acquired a destination medical campus that includes five MOBs totaling 188,500 square feet located in one of the wealthiest counties in the country. This campus is part of a high traffic, regional medical corridor and is immediately adjacent to the new Memorial Sloan Kettering Cancer Center-West Harrison opening next month. The campus also includes sufficient land to support the development of a new MOB to meet the growing regional demand.

In Charleston, HTA acquired the Tides Medical Arts Building, a 69,000 square foot class A MOB located near the foot of the Ravanel Bridge which connects Mt. Pleasant and Charleston. The Tides MOB was developed in 2006 and was purchased from multiple physician group tenants. Tides MOB  also serves as one of the primary outpatient centers for Roper St. Francis Healthcare-related physician groups in Mt. Pleasant. The asset is 100 percent leased with an average lease term of 7 years with strong imbedded annual rent growth.  This investment is in close proximity to HTA’s existing regional office downtown Charleston and expands the company’s Charleston presence to over 176,000 square feet.

Multi-State Medical Office Building Portfolio

Healthcare Trust Of America Acquires 960,000 SF Multi-State Medical Office Building Portfolio

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.