More often than not, ancillary healthcare
centers are located near or on a hospital campus, depending on whether they are affiliated with the institution. Such a relationship
is convenient for physicians and patients, as
well as advantageous for leasing. Coupled
with location, tenant synergy is crucial in
space absorption. The right tenant mix—a
diagnostic facility on the same floor as an
oncology center—is often conducive to business through referrals.
Take the Baylor Cancer Center in Dallas, for
example. The 460,000-square-foot outpatient
facility at Baylor University Medical Center is
93% preleased to Baylor Health Care System
and US Oncology Inc. Being developed by
Duke Realty Corp. and to be managed by
BremnerDuke, the $154-million building will
feature clinical and physician space, oncology
research and conference facilities.
Occupancy at medical office buildings
tends to remain strong despite the ebbs and
flows of the economy. But recessionary forces
this time around have chipped away at that
strength. Vacancy has risen 130 basis points
to 12% since the third quarter of 2008,
according to Marcus & Millichap.
Pontius partly attributes this to a pullback
in elective outpatient care, a consequence of
leaner consumer budgets. “If you or I broke
our arm, we would go to the orthopedist and
get it handled. But there are a large number
of elective procedures that we are going to
defer right now because we still have deductibles to meet,” he says.
Responding to the uptick in vacancy, operators have trimmed rents 4% to $23.90 per
square foot, according to Marcus & Millichap.
The firm anticipates lease rates will dip 4.8%
to $23.42 per square foot, while vacancy will
climb to 12.3% by year’s end.
At Healthcare Trust of America Inc., formerly known as Grubb & Ellis Healthcare
REIT, rents had been on a steady trajectory
but are stagnant today, says Scott Peters,
president and CEO of the Scottsdale,
AZ-based company. As an owner, he says,
“you’re looking to make sure tenants are
motivated to stay” in their space.
Waning absorption, Peters notes, is largely
borne of tenant uncertainty. “Physicians
don’t necessarily know what direction our
healthcare system is going. That has made
them more conservative,” he says. “Where
they had been in a five- or seven-year lease,
they are now looking for a three-year lease.”
And expansion plans, in many cases, have
certainly been put on hold.
Across Healthcare Trusts’ portfolio—
comprised of 135 medical office structures, four
hospitals, 12 assisted living facilities and three
general office buildings in 19 states—there
Baylor Cancer Center, a
facility at Baylor University
Medical Center in Dallas, is
being developed by Duke
Realty Corp. and will be managed by BremnerDuke upon
Introducing... HEALTHCARE TRUST OF AMERICA, INC. (formerly known as Grubb & Ellis Healthcare REIT, Inc.)
Maximum offering size of $2 billion, plus $200
million for the Distribution Reinvestment Plan*
To obtain a
Price $10.00 per share in Primary Offering,
$9.50 per share in Distribution Reinvestment Plan
Healthcare Trust of America, Inc. is a self-managed,
publicly registered, non-listed real estate investment
trust or REIT, that is conflict free with reduced fees.
16427 North Scottsdale Road
Scottsdale, AZ 85254
Telephone: (480) 998-3478
Fax: (480) 991-0755
We own a select real estate portfolio of medical office
buildings and healthcare facilities.
*Represents 200,000,000 shares of common stock offered at $10.00 per share and 21,052,632
shares of common stock offered at $9.50 per share under the distribution reinvestment plan.
THIS IS NEI THER AN OFFER TO SELL NOR A SOLICI TATION OF AN OFFER TO BUY THE SECURI TIES DESCRIBED
HEREIN. THE OFFERING IS MADE ONLY BY THE PROSPEC TUS. THIS ANNOUNCEMENT MUST BE READ IN
CONJUNCTION WI TH THE PROSPEC TUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND
RISKS OF THE OFFERING OF SECURI TIES TO WHICH I T RELATES. A COP Y OF THE PROSPEC TUS MUST BE MADE
AVAILABLE TO YOU IN CONNEC TION WITH THIS OFFERING. For more complete information about investing in
shares being offered by Healthcare Trust of America, Inc. including charges and expenses, request a prospectus. Read
the prospectus carefully before you make an investment decision. An investment in Healthcare Trust of America,
Inc. involves a high degree of risk and there is no assurance that the investment objectives of this program will be
attained. The merits of this offering have not been endorsed by any securities regulatory agency. Any representation
to the contrary is unlawful. Consult the prospectus for suitability standards in your state.
Realty Capital Securities, LLC, member FINRA. SIPC, is the dealer-manager for this offering.