Healthcare Trust of America (NYSE: HTA) recently announced it had closed on over $190 million worth of acquisitions in the second quarter of 2015. The acquisitions were in the REIT’s existing markets of Boston, Charleston, Indianapolis and Raleigh. Based on preliminary 2Q data, HTA is setting the pace for MOB transactions in 2Q. Here are a few insights into these acquisitions and you can visit HTA’s portfolio highlights for more information.
670 Albany is laboratory/biotech building located on the campus of Boston Medical Center. The building is 100% leased and was purchased from Spaulding & Slye Investments for $101.5 million. The per square foot value works out to $634. This price is in line with recent Boston transactions including RREEF’s recent purchase of 50 Staniford for $638 per SF.
HTA purchased the Community Health Pavilion in Noblesville, Indiana from a local firm. The asset is comprised of a health pavilion and accompanying smaller retail building totaling 126,000 square feet. It was built in 2012 as a part of Community Health’s strategy to establish health pavilions out in the community. The purchase price was $38 million or $302 per SF and expands HTA’s relationship with Community Health. Community Health is the primary tenant and the buildings are 96%+ occupied.
In Raleigh, HTA spent $41 million for 3 buildings affiliated with Rex Healthcare System. The buildings where primarily purchased from Tryon Partners II, LLC, a local firm and are:
- The Rex Cary MOB, which was purchased for $21.4 million ($322 per SF)
- Tryon Office Center II, which was purchased for $9.9 million ($293 per SF)
- Cary Orthopedics, which was purchased for $8.77 million($260 per SF)
University Place Professional Center, Charleston SC
HTA purchased University Place MOB from Lee Associates for $10.6 million or $265 per SF. The building is located within proximity to Trident Medical Center and is affiliated with the Medical University of South Carolina (MUSC). The building was built in 2012 and was 100% occupied at purchase.