Healthcare Trust of America, Inc. Announces Greenville, SC Medical Office Sale Agreement
SCOTTSDALE, Ariz., Aug. 2, 2018 /PRNewswire/ -- Healthcare Trust of America, Inc. (NYSE: HTA) announced today that it entered into an agreement to sell a portfolio of medical office buildings affiliated with Greenville Health System ("GHS") for $285 million. The portfolio consists of 16 MOBs totaling approximately 856,000 square feet of GLA located in Greenville, SC. The portfolio is 99% occupied. GHS occupies approximately 95% of the leased space and provides the majority of building services. The portfolio has just over five years of remaining average weighted lease term. This transaction is subject to customary closing conditions and is expected to close by the end of August 2018.
HTA acquired the portfolio for $163 million in September 2009 as part of a sale-leaseback transaction and has generated approximately 2% growth per annum, resulting in unlevered returns of over 13% during HTA's period of ownership. Excluding any releasing impacts and capital expenditures, the cash cap rate for the transaction is in the mid 5% range and the GAAP cap rate is in the high 4% range.
"We were early investors in Greenville, with a great health system, and are pleased at the value that has been created during our period of ownership," said Robert Milligan, CFO of Healthcare Trust of America. "This transaction allows us to accretively redeploy capital and resources into key markets where we can gain significant scale and utilize and expand our differentiated property management and leasing platform to create additional value for the long term."
About Healthcare Trust of America, Inc.
Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that have significantly outperformed the S&P 500 and US REIT indices. More information about HTA can be found on the Company's Website, Facebook, LinkedIn and Twitter.
The forward-looking statements included in this press release are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond HTA's control. Although HTA believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, HTA's actual results and performance could differ materially and in adverse ways from those set forth in the forward-looking statements. Factors which could have a material adverse effect on HTA's operations and future prospects include, but are not limited to:
Forward-looking statements speak only as of the date made. Except as otherwise required by the federal securities laws, HTA undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they are made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by, or on behalf of, HTA.
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SOURCE Healthcare Trust of America, Inc.
Company Codes: NYSE:HTA