Healthcare Trust of America Announces $187 Million of New MOB Investments
Healthcare Trust of America, Inc. (NYSE: HTA), the country’s largest dedicated owner and operator of medical office buildings, announced Wednesday that it has closed on about $187 million of medical office building (MOBs) investments so far in the third quarter of 2016.
These investments include the $150 million acquisition in the fee simple interest in four MOBs located on the St. Joseph Health – Mission Hospital Campus in Orange County, California, which is part of the Providence Healthcare Network, according to a HTA press release.
Specifically, HTA paid about $150 million for four multi-tenant MOBs with a combined 262,000 square feet in Mission Viejo, California. This was a fee simple transaction with no ground lease encumbrances, the press release said.
The MOBs are leased by several medical practices affiliated with St. Joseph Health System, which has an investment grade AA- rating by Fitch and an A1 rating by Moody’s. Including this transaction, HTA has invested about $200 million in the Los Angeles MSA. St. Joseph Health, which is currently part of Redmond, Washington-based Providence Health, is the third-biggest health system in the United States with 50 hospitals, as well as a strong presence up and down the West Coast.
Additionally, HTA paid $37 million for three MOBs with a combined 217,000 square feet located on the campus of various Tenet hospitals in Birmingham, Alabama. These transactions bring HTA’s total investment in the Birmingham MSA to about 319,000 square feet and$65 million. All HTA-owned MOBs in the Birmingham MSA are on-campus with Tenet Healthcare hospitals.
To date this year, HTA has invested more than $600 million in MOBS with more than 2 million square feet combined. Almost 60% of these MOBS were located on the campus of a hospital.
Written by Mary Kate Nelson