Healthcare Trust of America, Inc. (NYSE: HTA
) has acquired a portfolio of six on-campus medical office buildings located across Southern Florida for $62.9 million, or about $148 per square foot, from Behringer Harvard Opportunity REIT II, Inc. and AW Property Co.
The MOBs total 425,637 square feet and are all located on hospital campuses affiliated with Tenet Healthcare. The assets were 88 percent occupied at closing. Included in the sale were:
Victor Farris Bldg - 153,299 square feet at 1411 N. Flagler Dr. in West Palm Beach;
Palmetto Medical Plaza - 133,396 square feet at 7100 W. 20th Ave. in Hialeah, FL;
Medical Arts Bldg - 56,967 square feet at 1100 NW 95th St. in Miami;
East Bldg - 27,335 square feet at 3001 NW 49th Ave. in Lauderdale Lakes;
North Medical Bldgs - 27,720 and 26,920-square-foot buildings at 4850 and 4900 W. Oakland Park Blvd. in Lauderdale Lakes.
The sellers acquired the portfolio in October 2010 from Tenet Healthcare Corporation for $47.1 million, according to CoStar data, and had since renovated and repositioned the newly-stabilized assets. The buyer has retained AW Property Co. to continue leasing and management of the properties.
"We are excited to enter into the South Florida market in a significant way. These are the type of high-quality, on-campus MOBs that we believe will be core, critical real estate as healthcare continues to expand and evolve in this country," stated Chairman and CEO Scott D. Peters. "This is especially true in the South Florida market which continues to grow in population, remains a premier retirement destination, and will significantly benefit from the Affordable Care Act as it unfolds."
To date, HTA has invested approximately $242 million in 2013, representing a 9% expansion of HTA's asset base. The publicly-traded real estate investment trust is a fully-integrated owner of medical office buildings with a portfolio totaling 13.6 million square feet across 27 states valued at $2.8 billion based on purchase price.
Hunter Beebe and Brent Farrell with Healthcare Real Estate Capital represented the sellers, marking the fifth time HRE Capital has partnered with AW Property over the last three years. HTA handled the acquisition in-house.
Please see CoStar COMPS #2843138 for additional information on this transaction.