HOUSTON-With an investment of $38.1 million, Healthcare Trust ofAmerica Inc. has acquired an 84% interest in a partnership thatowns a 176,000-square-foot medical office building.

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The non-traded REIT bought the interest from Plan B-MOB LP, alimited partnership created by local developer Stonehenge RealEstate Investment Co. It also modified the partnership agreement soHTA has the right to control partnership decisions and to allow HTAfirst right of refusal to purchase remaining limited partnerinterests.

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Located at 7900 Fannin St., the medical office building isadjacent to The Woman's Hospital of Texas, an HCA-affiliatedhospital within the Texas Medical Center. The Texas Medical Centeris the largest medical center in the world with 49 medicine-relatedinstitutions, 13 renowned hospitals, two specialty institutions,two medical schools, four nursing schools, schools of dentistry andother health related schools and practices that receiveapproximately six million patient visits per year.

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Built in 2005, the four-story building is 100% leased to 23tenants, with a total weighted average remaining lease term of over11 years. The largest tenant, Obstetrical and GynecologicalAssociates, occupies approximately 85,000 square feet (48%) of theproperty with 16 years remaining on its lease. The balance of theproperty is leased to complementary medical practices whichprimarily focus on women's and children's health.

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Mark Engstrom, executive vice president of acquisitions for HTA,tells GlobeSt. the REIT found out about the opportunity throughindustry relationships. HTA and the partnership had been talkingon-and-off for more than 12 months before negotiating theacquisition terms 90 days ago.

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The transaction provided the 22 original physician investorswith the right to remain in the partnership, receive limitedpartnership units in HTA's operating partnership and/or receivecash. Ten original investors elected to remain in the partnershippost-closing as limited partners with an aggregate limitedpartnership interest of approximately 16%.

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This is the first acquisition that HTA made that involved somany physician investors, Engstrom says. “We had multiple investorswith different needs,” he notes. “I think our ability to becreative and flexible is what allowed us to get this dealdone.”

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