NOVI, MI-Healthcare Trust of America Inc. has completed acquisition of an approximately 203,000-square-foot on-campus medical office building, called St. John Providence MOB, in an all-cash transaction for approximately $51.3 million. The addition of the asset increases HTA's national presence into 26 states.
The on-campus St. John Providence MOB is connected directly to the Providence Park Hospital through an enclosed walkway. The Providence Park Hospital is part of Ascension Health Systems.
Developed, owned, and operated since 2007 by a group of independent physician investors, the St. John Providence MOB is currently 99% leased. Mark Engstrom, EVP of acquisitions, tells GlobeSt.com that this transaction was an off-market transaction, with no brokers, that was brought directly to HTA through its healthcare industry relationships. “This was a great opportunity for us to work directly with the group of independent physician investors,” he says.
There were no other competitors, he explains. “It was a timing issue,” he says, in terms why it was for sale. “They had a loan coming due and were looking at refinancing versus selling.”
The Signature Group will serve as a local point of contact and leasing agent for the asset's tenants, and HTA's Indianapolis office will be responsible for overall asset management.
Engstrom also tells GlobeSt.com that the medical office building and hospital are “very new,” which he says is very attractive to an institutional buyer like HTA.
The acquisition “allows HTA to expand its existing relationship with Ascension Health Systems while providing channels for future growth,” says HTA in a statement. HTA currently has total assets of approximately $2.4 billion based on purchase price, consisting of approximately 11.5 million square feet with overall portfolio occupancy of 91%.
HTA remains committed to acquiring high quality MOBs located on or adjacent to nationally recognized healthcare system campuses with the potential for long-term value appreciation, according to a prepared statement.
Engstrom explains that this particular area in Southeast Michigan has a lot of potential. “It’s been an economy that has been off the radar screen for a while, but we think there is yield there,” he says. “We are looking to grow our portfolio in that marketplace.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
