SCOTTSDALE, AZ-Healthcare Trust of America Inc. has inked an agreement to acquire a portfolio of nine medical office buildings for $196.6 million. The class A buildings, located in Florida, Massachusetts and New York, total 960,000 square feet.
When the deal closes, the transaction will rank as one of the biggest healthcare real estate deals of the year and the largest for HTA to date. “This is a significant transaction, both in terms of dollars and square feet,” says Mark Engstrom, HTA’s executive vice president of acquisitions. “Including this deal, we have acquired more than $600 million so far this year. And, we have additional acquisitions that we expect to close between now and year end.”
Engstrom tells GlobeSt.com that HTA sourced the portfolio off-market. The seller is a single-entity. “The portfolio came to us as a package that we were able to secure before it was broadly marketed,” he explains.
The portfolio, which is situated in Albany, NY, North Adams, MA, and Temple Terrace, FL, consists of buildings that are located both on-campus and off-campus. The buildings are relatively new, Engstrom says, pointing out that they are an average of eight years old.
The portfolio includes both single-tenant and multi-tenant properties and is 98% occupied with a weighted average remaining lease term of seven years. Tenants include Catholic Health East, Health Quest, The State University of New York, Berkshire Health Systems, LabCorp of America, US Oncology, and Community Care Physicians.
“The strength of this portfolio is the physicians and the physician entities that occupy it,” Engstrom says.
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