Healthcare: HTA to Acquire Three-State MOB Portfolio For $196M
By Randyl Drummer for CoStar News
Healthcare Trust of America, Inc. has agreed to acquire a nine-building medical office portfolio in New York, Massachusetts and Florida for about $196.6 million. If it closes, the transaction for the 98% leased Class A portfolio consisting of about 960,000 square feet would be among the largest U.S. health care real estate deals of the year and HTA’s largest to date.
The portfolio of on- and off-campus medical office building (MOB) properties has a with a weighted average remaining lease term of seven years. Scottsdale, AZ-based HTA declined to provide details of the transaction, but confirmed that it is an off-market transaction with a single seller. The closing of each property is subject to certain conditions, according to HTA, a self-managed non-traded real estate investment trust.
So far in 2010, HTA has acquired about $344.5 million in MOB and healthcare related assets totaling about 1.5 million square feet of gross leasable area, which is approximately 98% leased. In a deal that closed Sept. 30, HTA acquired a 73,300-square-foot medical office building on the San Martin campus of St. Rose Dominican Hospital in Las Vegas for $19.1 million.
The off-market transaction includes single-tenant and multi-tenant properties in Albany, NY; North Adams, MA, and Temple Terrace, FL. The average building age is eight years and includes prominent high-credit tenants such as Catholic Health East, Health Quest, State University of New York, Berkshire Health Systems, LabCorp of America, US Oncology and Community Care Physicians.
Mark D. Engstrom, executive vice president of acquisitions for HTA, said the deal continues the REIT’s focus of acquiring MOBs with strong occupancy and tenants located “in strategic locations with dominant healthcare systems.” Relationships with those providers have helped HTA identify and act on opportunities.
