Healthcare Trust Snaps Up $45M MOB Portfolio

March 26, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user sebrenner

Healthcare Trust of America has just laid down $45 million for a five-building, 260,500 square-foot medical office portfolio in Evansville and Newburgh, Inc., The property is fully master-leased to Deaconess Clinic, Inc., which is comprised of 110 primary care and specialty physicians, and all buildings adjoin either a hospital or clinic campus.

Deaconess Health System, Inc., of which Deaconess Clinic is an affiliate, guarantees the leases on all five buildings. It is the largest health system in Southern Indiana and carries an A+ rating from both Standard & Poor’s and Fitch.

When announcing the news, Healthcare Trust executive vice president of acquisitions Mark Engstrom said that that the Deaconess portfolio provided the company with the opportunity to own core real estate assets essential to Southern Indiana’s healthcare delivery.

“This portfolio is consistent with the new era of healthcare,” he said, “which involves hospitals and physicians working together in new ways to meet the needs of their communities.”

When announcing its fourth quarter results earlier this year, Healthcare Trust said that total revenues were up 38 percent from fourth quarter 2008, jumping to $37.4 million from $27.1 million. For the year ending Dec. 31, 2009, revenues were up 61 percent from a year earlier, leaping to $129.5 million from $80.4 million the prior year.

Healthcare Trust has acquired approximately $492 million in medical office and healthcare-related assets totaling 12 acquisitions representing 2.3 million square feet since transitioning to self-management in September 2009. Since its formation in 2006, Healthcare Trust has made 56 acquisitions valued at approximately $1.54 billion, which includes 187 buildings and two other real estate-related assets. The company’s portfolio totals approximately 7.8 million square feet and includes 168 medical office buildings, six hospitals, nine skilled nursing and assisted living facilities and four other office buildings in 21 states.