Healthcare Trust of America, Inc. (NYSE: HTA) announced today that it was under contract to acquire six medical office buildings ("MOBs") located in major east coast markets, including Boston, Miami and Baltimore for a total consideration of $200 million. The acquisitions are expected to close by the end of the second quarter and are subject to customary closing conditions.
The properties total 444,000 square feet in gross leasable area on a combined basis, 88% of which is located directly on health system campuses. The properties are approximately 96% occupied and feature strong embedded rent escalators. These contemplated acquisitions will expand HTA's investment in attractive, high barrier to entry, central business district ("CBD") markets on the east coast and, upon closing, would enable HTA to further implement its asset management and leasing platform in key markets.
The contemplated acquisition includes two on-campus MOBs totaling 253,000 square feet in downtown Boston leased to an investment grade health system. Following the closing of the transaction, Boston will become HTA's largest market by invested dollars and annual base rent.
The contemplated acquisition also features three MOBs in Miami. Following the closing of the contemplated acquisition, HTA's Miami portfolio will increase to approximately 753,000 square feet. HTA expects to utilize these properties to establish a South Florida office for HTA's internal property management and leasing platform.
The contemplated transactions are expected to be funded by the assumption of approximately $90 million in secured mortgage debt and available liquidity. Following the closing of the contemplated transaction, HTA would have pro forma leverage of approximately 33% of enterprise value, based on the closing share price on May 30, 2014 and other information provided for March 31, 2014.
J.P. Morgan is serving as a financial advisor to HTA on these contemplated acquisitions.
Healthcare Trust of America, Inc.