GlobeSt.com UPDATE: All Providers Changing With $133M Sale

Dallas-based TCC's healthcare execs aren't commenting until the deal closes. Likewise, Baylor officials aren't commenting beyond the press release, which states TCC holds onto management duties for the rest of its portfolio. And, no one's talking about just how much is left.

Bethany Mancini, HRT's investor relations director, confirmed to GlobeSt.com that the torch will pass to the Nashville-based public REIT's staff in Dallas, now overseeing two works-in-progress for the Dallas healthcare giant. The 20 office buildings were built 10 to 12 years ago, on the average, and have occupancies in the 96% range. The structures are near or on Baylor campuses at 3500 Gaston Ave. in Dallas, 1650 W. College Ave. in Grapevine and 2300 Marie Curie Blvd. in Garland. Under the agreement, Baylor will hold a 55-year ground lease.

Mancini says HRT will detail the transaction in a July 30 second-quarter earnings call. The $133-million takedown from Baylor, she says, will follow past practice--with no secured leverage. "We may use our line of credit in the short-term, and then issue equity or long-term debt." she says. If all goes as planned, the transaction closes in the third quarter.

As the buyout proceeds, HRT and Baylor have stepped up their development alliance with plans for two office buildings at University Medical Center and All Saints Medical Center in Fort Worth. The two first teamed in January 2003 with the start of a 166,000-sf medical office building at 4700 Alliance Blvd. in Plano, a $32-million project on track to deliver in first quarter 2005. Then in the spring, the duo kicked off a second project: a $22-million, 110,645-sf medical office building at 1901 N. MacArthur Blvd. in Irving. It delivers in third quarter 2005.

Baylor hasn't shut TCC out in the cold for development side or managing the rest of its portfolio. In March, TCC had 10 Baylor projects under construction in North Texas suburbs. At last count, Baylor's real estate consisted of 11 hospitals, more than 70 primary care centers and practices, eight rehab clinics, nine senior health centers, 19 affiliated ambulatory surgery facilities and the Baylor Research Institute. It operates more than 2,500 beds in Dallas/Fort Worth.

As of March 31, HRT had about $1.7 billion invested in 228 mortgages and properties, amounting to 11.8 million sf in 30 states. Its management package totals about 5.2 million sf.