HTA acquires $13.5M medical office portfolio in Texas

Jul 7 2010

Healthcare Trust of America, Inc. ("HTA"), a self-managed, non-traded real estate investment trust, announced the purchase of a medical office portfolio located in Denton, Texas and Lewisville, Texas for approximately $13,500,000.

The Denton medical office building is an approximately 35,720 square foot facility located on the campus of Texas Health Presbyterian Hospital Denton (the "Hospital") located 40 miles northwest of Dallas. Built in 2000, the three-story single tenant building is 100% leased through 2017 to Texas Health Resources, which carries a Moody's rating of Aa3.  The Select Rehabilitation Hospital of Denton (acquired by HTA in December, 2009) is also located at the Presbyterian Hospital Denton campus. The Hospital is a 255-bed acute-care, full-service hospital serving Northern Texas and Southern Oklahoma. An affiliate of the faith-based, nonprofit Texas Health Resources system, the Hospital has approximately 890 employees and an active medical staff of more than 300 physicians.  Employing more than 3,600 physicians, it is one of the largest faith-based, nonprofit healthcare delivery systems in the United States with 13 hospitals and 3,355 licensed hospital beds.  

The Lewisville medical office building, consisting of approximately 18,000 square feet, is 100% leased to Texas Oncology with a remaining term of 10 years. Built in 2000, the building is located in the suburb of Lewisville, TX, which is 25 miles northwest of Dallas. U.S. Oncology is the largest oncology practice management company in the United States and is affiliated with more than 1,300 physicians providing care for 850,000 patients in 500 locations throughout 38 states.

"These two quality properties increase the HTA Texas Portfolio to 1,278,600 square feet and expand upon the hospital relationships that we initiated in 2009," stated Mark D. Engstrom, Executive Vice President of Acquisitions for HTA.  "This transaction is consistent with our investment strategy of acquiring high quality, stable, on campus medical office buildings and our philosophy of partnering with strong healthcare systems."