HTI to Buy Sibling’s Portfolio for $120M

Following the transaction’s closing, American Realty Capital Healthcare Trust III expects to liquidate and dissolve. The sale comprises 19 properties totaling approximately 468,000 square feet.

Sue Perrotty, HT III board chair & lead independent director
Sue Perrotty, HT III board chair & lead independent director

In an all-cash transaction valued at about $120 million, Healthcare Trust Inc. (HTI) will be acquiring substantially all of the assets of American Realty Capital Healthcare Trust III Inc. (HT III), the two New York–based companies announced Monday.

Both companies are sponsored by AR Global, also of New York, and both are externally managed by the same management team.

The ARC HT III portfolio comprises 19 properties totaling 467,932 square feet, of which 17 are medical office buildings with an average occupancy of 97.1 percent, Todd Jensen, Interim CEO & president of both companies, told Commercial Property Executive. The other two properties are senior housing, one operating and one triple-net leased.

Transaction closing

Following the transaction’s closing, HT III expects to liquidate and dissolve. Completion of the transaction is subject to the approval of HT III’s stockholders and HT III’s plan of liquidation, as well as to other closing conditions. Closing is expected in the third or fourth quarter.

HTI Non-Executive Board Chairman Leslie Michelson described the acquisition, in a prepared statement, as “in line with our plans for the deployment of additional capital.” He added that the deal “enhances HTI’s portfolio through increased occupancy, a broadened base of tenants and operators, further geographic diversification, and the addition of more medical office buildings and private pay assets.

HT III Board Chair and Lead Independent Director Sue Perrotty explained that from that company’s side, “The all-cash transaction provides liquidity to shareholders and the institutional buyer serves to mitigate any execution risk.

KeyBanc Capital Markets Inc. is serving as exclusive financial advisor to HTI’s special committee, and Arnold & Porter Kaye Scholer LLP is serving as the committee’s legal counsel.

SunTrust Robinson Humphrey Inc. is serving as exclusive financial advisor to HT III’s special committee, and Shapiro Sher Guinot & Sandler is the committee’s legal counsel.

Proskauer Rose LLP is serving as outside legal counsel to both companies.