By a News Reporter-Staff News Editor at Investment Weekly News -- Healthcare Trust of America, Inc. (NYSE: HTA) announced that it has closed on its previously announced acquisitions in Boston and Miami. The previously announced contract to acquire an asset in Baltimore is anticipated to close within the month. On a combined basis, these acquisitions, including the Baltimore asset post-closing, total $200 million and include approximately 444 thousand square feet of gross leasable area, 88% of which is located directly on health system campuses. Additional information on this acquisition can be found on HTA's website at www.htareit.com.
"We are pleased to close our investments in Boston and Miami. These assets are located in attractive, high barrier to entry markets on the east coast that feature above average income levels and health insurance coverage," stated Chairman and CEO Scott D. Peters. "They are well positioned to grow in value over the long term and enable us to expand our asset management and leasing platform in these key markets."
In Boston, HTA is acquiring a fee simple interest in the Biewend and Tupper buildings which are attached to the Tufts Medical Center located in the downtown area. The Biewend Building is a 155 thousand square foot medical office building (MOB) that houses key hospital clinical outpatient practices. The Tupper Building is a 98 thousand square foot building that houses the hospital's Molecular Cardiology Research Institute and other entities. Both of these buildings are 100% leased to the Tufts Medical Center (Rated BBB) under a long term lease that runs through 2027 and features annual rent escalators.
In Miami, HTA's portfolio will increase to approximately 753 thousand square feet through the acquisition of three MOBs totaling 113 thousand square feet. The properties are located on campus or in close proximity to the Baptist Health System'sSouth Miami Hospital and Baptist Hospital of Miami. These properties are approximately 80% occupied and will be immediately managed by HTA's internal property management and leasing platform.
HTA expects to close on its previously announced acquisition in Baltimore by the end of the second quarter, subject to customary closing conditions. The contemplated acquisition in Baltimore is for the Johnston Professional Building, an on-campus MOB attached to the MedStar Memorial Union hospital. This MOB totals 79 thousand square feet and features significant hospital tenancy including its nationally recognized orthopedic program.
Following these transactions, HTA will have pro forma leverage of approximately 33% of enterprise value, based on March 31, 2014 information and HTA's closing share price as of June 6, 2014. In addition to the purchase price, HTA expects to invest up to $7 million in capital improvements in the first year of the acquisition.
Keywords for this news article include: Hospital, Investment and Finance, Healthcare Trust of America Inc..
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