Healthcare Trust Buying PA Asset for $41M

PITTSBURGH-Continuing its recent acquisition tear, Healthcare Trust of America made an agreement to acquire the Federal North Medical Office Building here for $40.7 million. The Scottsdale, AZ-based REIT is buying the asset from a partnership between the Silk & Stewart Development Group and Madison Realty Group, according to media reports.

The 191,612-square-foot, four story Federal North is two blocks away from Allegheny General Hospital, which occupies about 85% of the building, which is 99% leased. Services in the building include orthopedics, urology and radiology.

Allegheny’s tenants have an average weighted lease term of more than 10 years, and that was one of the features that attracted Heathcare Trust to the acquisition, says Mark Engstrom, the firm’s executive vice president of acquisitions, says in a release. He also cites its location, which is a mile north of the city’s Central Business District.