SCOTTSDALE, AZ-Healthcare Trust of America Inc. has agreed to purchase $48 million worth of medical office properties in California, Georgia, South Carolina and Texas. The non-traded REIT expects to close on these acquisitions this quarter.
HTA announced the buys as part of its first quarter 2010 financial results. Specifically, the assets slated for acquisition include medical office building portfolios in Hilton Head, S.C., Charleston, S.C. and Lewisville, TX, along with medical office buildings in Stockbridge, GA, Pearland, TX and San Luis Obispo, CA.
Since January 1, 2010, HTA has acquired about $184.5 million in medical office and healthcare-related assets including nine acquisitions totaling roughly 864,000 square feet. Since its inception, the REIT has made 62 geographically-diverse acquisitions totaling $1.6 billion, which includes 194 buildings and two other real estate-related assets.
Today, HTA’s portfolio totals approximately 8.3 million square feet and includes 175 medical office buildings, six hospitals, nine skilled nursing and assisted living facilities and four other office buildings located in 21 states.
“We focus on core assets with a strong relationship with credit rated healthcare systems,” says Scott Peters, HTA’s chairman, president & CEO. For example, the REIT’s first quarter acquisitions were characterized by average remaining lease terms in excess of 10 years and occupancy of over 98.5%.
During that period, it established relationships with Deaconess Health System in Indiana, Ascension Health, National Institutes of Health, Johns Hopkins University Medical Center and Texas Children's Hospital.
Peters tells GlobeSt. that HTA is able to continue its aggressive acquisition activity due to its relationships, both off market and through traditional brokers, and with healthcare systems.
“The acquisition environment [continues] to be competitive and buyers continue to look for strong healthcare assets,” he notes, adding that cap rates have stayed consistent, and cash buyers still have an advantage when talking with sellers.
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