Healthcare: Healthcare Trust of America Completes $84 Million Portfolio Acquisition in Five States
by Alex Finkelstein for Real Estate Channel
There is no stopping the acquisition march of Healthcare Trust of America. The Scottsdale, AZ-based firm has completed its long-planned $84.24 million acquisition of medical office buildings in five states.
The self-managed, non-traded, real estate investment trust announced it had previously acquired four buildings from the owner and developer, Rendina Companies of Jupiter, FL, which brought the transaction directly to HTA.
The 98% leased portfolio has a weighted average remaining lease term in excess of eight years and is comprised of five Class A on-campus medical office buildings totaling approximately 307,000 square feet.
The on-campus buildings are located in five states — Florida, Arizona, New York, Nevada, and Missouri.
The acquired properties are:
* Wellington Medical Arts Pavilion III, an approximately 48,000 square foot multi-tenant medical office building in Wellington, FL.
* Gateway Medical Plaza, an approximately 60,160 square foot on-campus multi-tenant medical office building located in Tucson, AZ.
* Des Peres Medical Arts Pavilion, an approximately 48,000 square foot on-campus multi-tenant medical office building located in St. Louis, MO.
* San Martin Medical Arts Pavilion, an approximately 73,300 square foot on-campus multi-tenant medical office building located in Las Vegas, NV.
* Saint Francis Medical Arts Pavilion, an approximately 77,300 square foot on-campus multi-tenant medical office building located in Poughkeepsie, NY.
Wellington Medical Arts Pavilion is an on-campus four-story medical office building acquired for approximately $12,825,000.
This property was completed in 2007 and is connected to Wellington Regional Medical Center, a 158-bed acute care hospital that has been providing healthcare services to the residents of Palm Beach County since 1986 and is a part of Universal Health Services, Inc. (Moody’s credit rating of “Ba2″).
The Medical Arts Pavilion is 100% leased and includes WRMC as a significant tenant, as well as other prominent affiliated tenants.
“This acquisition reflects HTA’s continued success in securing direct transactions from our strong industry relationships,” Mark D. Engstrom, Executive Vice President of Acquisitions for HTA, said in a prepared statement.
“This portfolio typifies our 2010 acquisitions as it has significant size, geographic diversification in strong markets, stabilized occupancy, and minimal near-term lease expiration exposure,” Engstrom says.
“We have positioned HTA such that we work very well with all types of medical office owners and are both creative and flexible in our approach to structuring transactions.”
Since Jan. 1, 2010, HTA has acquired approximately $715 million in medical office and healthcare related assets based on acquisition price, including 3.09 million square feet of gross leasable area in 2010, which is 98% leased with an average remaining lease term of 9 years.
HTA also has completed purchase and sale contracts on additional medical office buildings and healthcare-related assets totaling approximately $106 million and approximately 490,000 million square feet.
