SCOTTSDALE, AZ—Healthcare Trust of America Inc. recently revealed Q2 numbers for 2017, showing that it has closed investments totaling over $2.6 billion including 93 properties aggregating 6.2 million square feet. Approximately 91% of the acquired GLA was located in HTA's existing key markets.
As of the end of the second quarter, HTA had closed the majority of the $2.75-billion Duke Realty medical office building portfolio that was revealed in May 2017. Of that portfolio, HTA has closed 69 of the properties totaling approximately $2.2 billion and 4.9 million square feet of GLA.
Another 11 properties totaling $495 million have been excluded from the transaction, primarily as a result of executed rights of first refusal. The remaining three properties and a land parcel, totaling $138 million and 245,000 square feet of GLA are expected to close in July, the company said in its Q2 report.
In addition to the Duke transaction, HTA has invested approximately $391 million in 24 medical office buildings, totaling 1.3 million square feet during the second quarter. That brings HTA's total first half closed investments to $2.6 billion at an average cap rate of approximately 5% before any synergies, which consists of over 6.3 million square feet of GLA comprised primarily of on-campus, class A medical office buildings located in HTA's key, gateway markets, according to a prepared release.
To finance the transactions, HTA has raised over $2.9 billion in debt and equity capital including: $1.7 billion in common equity, net, including marketed transactions and its ATM, issuing approximately 59 million shares; $900 million of senior unsecured bonds at 3.4% average interest rate and duration of 7.8 years; and $286 million of secured, seller financing at 4.0% per year, maturing in three equal annual installments beginning in 2018.
As GlobeSt.com previously reported, for Duke, the sale to HTA, when completed, will mark an exit from the MOB business. Although the MOB sector had generated “substantial value” for Duke's stakeholders since the REIT acquired the platform in 2007, “we took advantage of strong investor appetite in the market for high quality and substantially on-campus medical office real estate,” Jim Connor, Duke's chairman and CEO, said when the deal was announced.
SCOTTSDALE, AZ—Healthcare Trust of America Inc. recently revealed Q2 numbers for 2017, showing that it has closed investments totaling over $2.6 billion including 93 properties aggregating 6.2 million square feet. Approximately 91% of the acquired GLA was located in HTA's existing key markets.
As of the end of the second quarter, HTA had closed the majority of the $2.75-billion Duke Realty medical office building portfolio that was revealed in May 2017. Of that portfolio, HTA has closed 69 of the properties totaling approximately $2.2 billion and 4.9 million square feet of GLA.
Another 11 properties totaling $495 million have been excluded from the transaction, primarily as a result of executed rights of first refusal. The remaining three properties and a land parcel, totaling $138 million and 245,000 square feet of GLA are expected to close in July, the company said in its Q2 report.
In addition to the Duke transaction, HTA has invested approximately $391 million in 24 medical office buildings, totaling 1.3 million square feet during the second quarter. That brings HTA's total first half closed investments to $2.6 billion at an average cap rate of approximately 5% before any synergies, which consists of over 6.3 million square feet of GLA comprised primarily of on-campus, class A medical office buildings located in HTA's key, gateway markets, according to a prepared release.
To finance the transactions, HTA has raised over $2.9 billion in debt and equity capital including: $1.7 billion in common equity, net, including marketed transactions and its ATM, issuing approximately 59 million shares; $900 million of senior unsecured bonds at 3.4% average interest rate and duration of 7.8 years; and $286 million of secured, seller financing at 4.0% per year, maturing in three equal annual installments beginning in 2018.
As GlobeSt.com previously reported, for Duke, the sale to HTA, when completed, will mark an exit from the MOB business. Although the MOB sector had generated “substantial value” for Duke's stakeholders since the REIT acquired the platform in 2007, “we took advantage of strong investor appetite in the market for high quality and substantially on-campus medical office real estate,” Jim Connor, Duke's chairman and CEO, said when the deal was announced.
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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.
