Yet Another Acquisition: Healthcare Trust Makes $40M Deal

Healthcare Trust of America is continuing its medical office building spending spree.

April 9, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user kla4067

Healthcare Trust of America is continuing its medical office building spending spree. The REIT said on Thursday that it has inked an agreement to acquire the Federal North Medical Office Building in Pittsburgh for approximately $40.7 million.

The 191,612 square-foot, Class A medical office building is located close to the city’s central business district and is two blocks from the flagship Allegheny General Hospital, a 724-bed academic center. Its four-story section is 99.2 percent leased to nine tenants, including Allegheny General, which occupies or guarantees more than 85 percent of the building’s tenancy for a weighted average remaining lease term in excess of 10 years. Its three-story section was built in 1999 and includes a four-level, 525-space parking garage.

Earlier this week Healthcare Trust wrapped up the acquisition of the 101,400 square-foot Triad Technology Center in Baltimore for a price of approximately $29.3 million. During the first quarter of this year, the company snapped up 13 medical office buildings for a total of $146.3 million. Those properties total approximately 673,000 square feet and are 98.5 percent leased.

Since its formation in 2006, Healthcare Trust has made 61 acquisitions valued at $1.61 billion based on purchase price. This portfolio includes 192 buildings and two other real estate-related assets. The total portfolio totals 8.1 million square feet, including 173 medical office buildings, six hospitals, nine skilled nursing and assisted living facilities, and four other office buildings located in 21 states.