PITTSBURGH-Healthcare Trust of America, Inc. picked up the 191,612-square-foot Federal North medical office building in Pennsylvania's second-largest city for approximately $40.5 million.
The class A asset--which is 99% occupied with a mix of long-term tenants--is located within two blocks of the 724-bed Allegheny General Hospital, the flagship hospital in the West Penn Allegheny Health System, the latter of which accounts for more than 25% of the patient market share here and in the surrounding five-state region.
"This acquisition is consistent with our long-term strategy of acquiring high quality medical office buildings in key markets, which are affiliated with strong healthcare systems," says Mark D. Engstrom, executive vice president of acquisitions for the Scottsdale, AZ-based non-traded REIT. To his point, during the past decade, Pittsburgh has added nearly 4,000 jobs each year in the healthcare industry.
"AGH or its affiliates lease 85% of the building with an average remaining lease term in excess of 10 years, making this location integral to AGH's delivery of outpatient care," Engstrom tells GlobeSt.com. "In completing our tenth acquisition for 2010, we will continue to apply and leverage our balance sheet and liquidity to prudently grow our portfolio and maximize shareholder value."
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