Healthcare Trust Acquires 203 KSF Medical Office Building in Michigan
Healthcare Trust of America Inc. expands its presence to 26 states with the acquisition of a 203,000-square-foot medical office building sited on a 200-acre medical campus 30 miles outside of Detroit in Novi, Mich. HTA plunked down just over $51.3 million in cash to purchase the five-year-old building from a group of independent physician investors.
Carrying the address of 26850 Providence Parkway, St. John Providence MOB is physically linked to the Providence Park Hospital, which is operated by the St. John Providence Health System. The tenant roster at the five-story building is near maximum capacity, with an occupancy level of 99 percent. Tenants include offices of Providence Park Hospital, offices of the physicians who developed the property and other medical practices.
HTA purchased the MOB in an off-market transaction, relying on what the REIT describes as its “strong healthcare industry relationships.” And such relationships are becoming increasingly valuable for any investor eager to snap up premier MOBs in the current climate. “The most price competitive healthcare investors — public REITs and institutional investors — were faced with a dearth of the highest quality product as on-campus medical office in core locations were rarely available from hospital sellers or the small number of investor owners,” a fourth-quarter report by commercial real estate services firm Jones Lang LaSalle Inc. noted.
HTA, which added 118,000 square feet to its portfolio with the acquisition of a two-building medical office complex in Phoenix late last year, is among the top investors in medical properties, having finished 2011 second in line behind Grubb & Ellis Healthcare REIT II and ahead of American Realty Capital Healthcare Trust. Together, the three REITs shelled out in excess of $500 million for property purchases last year, or roughly 30 percent of the total $1.8 billion in MOB acquisitions, as per the report.