Healthcare Trust of America to acquire 228,870 square foot West Penn Allegheny Building for $41.34M

Aug 25 2010

Healthcare Trust of America, Inc. ("HTA"), a self-managed, non-traded, real estate investment trust, announced the execution of an agreement to acquire an office building in Pittsburgh, Pennsylvania (the "West Penn Allegheny Building") for approximately $41,340,000.  The closing of the acquisition is subject to the satisfaction of a number of conditions.

The West Penn Allegheny Building is an approximately 228,870 square foot, Class A office building, located less than one mile from Allegheny General Hospital (AGH), a flagship hospital in the West Penn Allegheny Health System.  AGH is a 724-bed academic center that has been serving Pittsburgh's residents since 1885.  The West Penn Allegheny Building is also located adjacent to PNC Park, home of the Pittsburgh Pirates and along the shore of the Allegheny River.

Built in 2003, the six-story, multi-tenant building is 100% leased and includes a 101 space subterranean parking structure.  AGH occupies a portion of the building and upon closing, will lease 100% of the building under a master lease for a term of 15 years.  AGH currently leases approximately 31,000 square feet of the building and will continue to expand within the building as it consolidates its healthcare related office uses.

"This is an opportunity to acquire a well located, long-term stabilized asset that will be integral to AGH's corporate operations," stated Mark D. Engstrom, Executive Vice President of Acquisitions for HTA.  "Earlier this year, HTA acquired the Federal North medical office building, which is located less than two blocks from AGH and is predominately leased to AGH.  Acquiring the West Penn Allegheny Building is an example of HTA's commitment to partnering with healthcare systems as part of their real estate strategy and overall delivery of healthcare."