The two Florida properties acquired in the cash-and-debt transaction are the 100%-leased, 19,561-sf Urology Center of Florida in Ocala, FL, and the 83%-leased, 144,5150 sf Morningside Professional Plaza in Port St. Lucie, FL. The 10 other properties are in Georgia, Tennessee and Texas.

Windrose paid an average $133.76 per sf for the total 508,356 sf acquired from Nashville, TN-based Medical Properties of America. The deal consists of about $29 million in cash and $38.4 million of assumed debt. The transaction has a blended cap rate of 10% based on net operating income. Annual escalators on the leases range from the 2% or CPI at the low end and up to 4% annually on the high end.

"This acquisition significantly enhances Windrose's multi-tenant medical office building management capability," says Windrose president Fred Farrar. "Windrose has agreed to retain seven MPA property management staff members to provide continuity in management of these assets."

Windrose chairman and CEO Fred Klipsch says the acquisition "puts us on track to attain our stated dividend goal of 22 cents to 25 cents (per share) in the third and fourth quarters of 2003, respectively." He says the MPA portfolio "fits Windrose's strategy of acquiring quality multi-tenant medical office buildings or near hospital campuses."