Healthcare Trust of America, Inc. (HTA) and Plaza Companies have formed an alliance on more than 641,000 square feet of high-profile medical office buildings in Sun City and Sun City West communities in the Northwest Phoenix area.
Scottsdale-based HTA purchased the portfolio of medical office buildings — known to local residents as being part of the former Sun Health System — in December of 2009. The 17-property portfolio represents a large chunk of the Northwest Phoenix area's health care infrastructure.
HTA has reached agreement with Peoria-based Plaza Companies to provide property management and leasing services for the portfolio, and Plaza Companies will also work with HTA on a capital improvement program for the properties.
The acquisition of the portfolio is part of a significant expansion effort by HTA in the Arizona marketplace. The company now owns more than 1 million square feet of gross leasable area in Arizona.
"Healthcare Trust of America, Inc. acquired the Sun Cities portfolio because of the strong demographics of these retirement communities, the market strength of Banner Health and their continuing investment in these hospitals. The medical office portfolio is 92% leased and positioned to play a vital role in the delivery of quality care in these communities," said Mark D. Engstrom Executive Vice President – Acquisitions for HTA. "Our balance sheet strength will allow us to respond to the evolving needs of the physician and hospital community under the new era of healthcare in the U.S."
"The Sun Cities acquisitions allows HTA to align ourselves with large, high-quality medical office portfolios associated with high-quality healthcare systems in strategically located markets," said Scott D. Peters, Chief Executive Officer and President of HTA. "Our alliance with the Plaza Companies affords HTA the opportunity to bring high-quality, service-focused management and leasing services to our tenants."
Plaza Companies has a 28-year track record of providing property management, leasing and construction management services in the area, as well as being an involved corporate citizen in the Northwest Phoenix area. Like HTA, it has significant expanded its portfolio over the past few years despite the economic downturn.
Sharon Harper, President & CEO of Plaza Companies, said the new alliance with HTA will bring those same principles to this large portfolio of buildings. "This is a very exciting alliance and one we are proud to become a part of," Harper said. "HTA has a superb track record as a medical office property owner of the highest caliber, and combined with Plaza's commitment to superior service and facilities, our joint efforts will lead to better medical facilities for the region."
Along with developing a capital improvement program, HTA and Plaza Companies will also work to develop a strong relationship with Banner Health, owner of the two largest hospitals in the area, to enhance the ability to recruit quality physicians to the area.
Dave Kobriger, CEO of Banner Arizona Medical Clinic, which is a tenant of Plaza on the Plaza Del Rio campus in Peoria and the Del Webb Hospital Campus in Sun City West, said the HTA/Plaza alliance is good news for area residents and for Banner Health.
"Banner Arizona Medical Clinic has a long and successful track record of working with Plaza Companies and is pleased to know that they have created an alliance with HTA on these important medical office buildings," he said. "From our own experiences, we know that this alliance can have an extremely positive influence on the quality of health care in the area by making sure medical offices are in top condition and by helping to attract the best doctors to the Sun Cities."
HTA and Plaza Companies have already begun reaching out to current tenants of the medical office buildings to provide them with information about the benefits of HTA's new ownership and the management to be provided by Plaza Companies, and will also undertake a strong community outreach program to educate local residents about how the alliance will improve health care in the area.
HTA and Plaza Companies will be working throughout the coming months to identify the most beneficial capital improvements to the properties and to begin the process of getting those improvements completed. They are committed to great tenant relationships and excellent facilities.
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