SCOTTSDALE, ARIZ. — Scottsdale-based Healthcare Trust of America (HTA) continues its busy year of acquisitions with the closing of two new medical office purchases. The REIT has closed on part of a five-building portfolio and another single-property deal in a new market.
In the first transaction, HTA closed on three of the five Class A properties it is acquiring from Rendina Companies. The first building is Des Peres Medical Arts Pavilion II, which is located on the campus of Des Peres Hospital in St. Louis. Constructed in 2007, the two-story building contains 48,000 square feet of space. SLUCare, which is an affiliate of Saint Louis University, and Tenet Healthcare, which is an affiliate of the owner of Des Peres Hospital, occupy approximately 50 percent of the building. Overall, the building is fully leased.
The second building is San Martin Medical Arts Pavilion, a three-story, 73,300-square-foot building located in Las Vegas. The third building is Saint Francis Medical Arts Pavilion, a 77,300-square-foot building located in Poughkeepsie, N.Y. The two properties in the portfolio remaining to be closed on include Gateway Medical Plaza, a 60,160-square-foot building located in Tucson, Ariz., and Wellington Medical Arts Pavilion III, a 48,000-square-foot building located in Wellington, Fla. The three former properties closed for a purchase price of $56.9 million. When the two latter properties close, which is expected by the end of the year, the total acquisition price of the portfolio will be $86.1 million. The portfolio has an overall occupancy rate of 98 percent.
“This portfolio acquisition is significant because of its size, geographic diversification and long-term stability with strong tenants,” said Mark Engstrom, executive vice president of acquisitions for HTA, in a statement. “Acquiring portfolios from national MOB developers provides HTA with properties that include the latest medical office design and technology to accommodate future changes in healthcare delivery.”
In its second transaction, HTA has entered the North Carolina market with the $16.65 million purchase of Raleigh Medical Center, which is located adjacent to the Rex Healthcare Main Campus in Raleigh, N.C. The three-story building contains 89,000 square feet of space. It is 91 percent leased to a tenant roster that includes Wake Research Associates, Triangle Orthopedic Associates and Carolina Ear & Hearing Clinic.
These two purchases cap off a busy month and busy year for HTA. Just in November, the REIT entered into an agreement to acquire a nine-building portfolio located in New York, Massachusetts and Florida for $196.64 million. It also closed on the $39 million purchase of a medical office building located in Pittsburgh. Year to date, HTA has purchased 1.9 million square feet of medical office and healthcare space for a total of $412.3 million. It also has under contract an additional 1.5 million square feet of space totaling $392 million.
— Coleman Wood