October 29, 2010
\nBy Barbra Murray, Contributing Editor<\/p>\n
With the stroke of a pen, Healthcare Trust of America Inc. arranged to enhance its medical office building holdings by 960,000 square feet. The REIT orchestrated a deal to purchase nine Class A properties in states along the Atlantic Seaboard for approximately $196.6 million.<\/p>\n
With locations on and off hospital campuses, the MOB portfolio encompasses assets in Albany, N.Y.; North Adams, Mass.; and Temple Terrace, Fla. The group of buildings has an average age of eight years and a 98 percent occupancy level with leases featuring a seven-year weighted average remaining term. Some of the tenant rosters bear the name of a single entity, while others list multiple businesses. Not only is the portfolio well leased, it is well leased to a bevy of credit-worthy tenants, including Catholic Health East, The State University of New York and LabCorp of America. <\/p>\n
Mark D. Engstrom, executive vice president of acquisitions with Healthcare Trust, noted that the transaction continues the corporate focus to acquire high-quality MOBs with significant occupancy and strong credit tenants in strategic locations with dominant healthcare systems. <\/p>\n
In October alone, Healthcare Trust has made three acquisitions, not including the recently announced transaction. This month, the REIT bought the 73,300 square-foot San Martin Medical Arts Pavilion on the San Martin Campus of St. Rose Dominican Hospital in Las Vegas for $19.1 million; the 105,000 square-foot medical office portfolio in Orlando for $18.3 million; and a 33,600 square-foot MOB in Santa Fe, New Mexico, for nearly $9.6 million. Year-to-date, Healthcare Trust has shelled out an aggregate $344.5 million to purchase MOBs and health-related properties totaling 1.5 million square feet. <\/p>\n
Currently, all signs indicate that paying close attention to the MOB submarket of the office sector is a wise move. MOBs top the Urban Land Institute and PricewaterhouseCoopers’ Emerging Trends in Real Estate 2011 list of prospects for niche and multi-use property types, outpacing infrastructure, data centers and urban mixed-use properties. As per the report, “As baby boomers age, physician visits will soar [and] building and owning medical offices plays well into the expected demand wave.”<\/p>\n","protected":false},"excerpt":{"rendered":"
With locations on and off hospital campuses, the MOB portfolio encompasses assets in Albany, N.Y.; North Adams, Mass.; and Temple Terrace, Fla. <\/p>\n","protected":false},"author":936,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37774,37775,21742,21747,37776,37777,37778],"tags":[],"class_list":["post-1004024096","post","type-post","status-publish","format-standard","hentry","category-rc-dividend-yield","category-rc-forward-affo-payout-ratios","category-latest","category-office","category-rc-premium-discount-to-nav","category-rc-price-ltm-ffo","category-rc-total-return"],"acf":[],"yoast_head":"\n