Healthcare Trust of America’s Director of Leasing – South/Southwest Region Interviewed by...

7/29/2019 Healthcare Trust of Americas Director of Leasing South/Southwest Region Interviewed by Commercial Executive

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PRESS RELEASE

Financial Contact: Media Contact:

Kellie S. Pruitt Robert Milligan

Chief Financial Officer Senior Vice President of Corporate Finance

Healthcare Trust of America, Inc. Healthcare Trust of America, Inc.

480.258.6637 480.998.3478

[email protected] [email protected]

Healthcare Trust of Americas Director of Leasing South/Southwest Region Interviewed by

Commercial Executive Magazine

SCOTTSDALE, ARIZONA (March 27, 2013) On March 27, 2013, Commercial Executive Magazine (CEM)

published an interview with Chelsea Maddox, Healthcare Trust of America, Inc.s (HTA) Director of

Leasing for the South/Southwest Region. The article, which discusses HTA and its new in-house leasing

platform, was published on CEMs website (www.cem-az.com) and can also be located on HTAs home

page (www.htareit.com).

About Healthcare Trust of America, Inc.

Healthcare Trust of America, Inc. (NYSE:HTA), a publicly traded real estate investment trust, is a fully-

integrated, leading owner of medical office buildings. HTA listed its shares of Class A Common Stock on

the New York Stock Exchange on June 6, 2012. HTA is a full-service real estate company focused on

acquiring, owning and operating high-quality medical office buildings that are predominantly located onor aligned with campuses of nationally or regionally recognized healthcare systems in the U.S. Since its

formation in 2006, HTA has built a portfolio of properties that totals approximately $2.6 billion based on

purchase price and is comprised of approximately 12.6 million square feet of gross leasable area located

in 27 states. It operates its properties through regional offices in Scottsdale, Charleston, Atlanta, and

Indianapolis.


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A r i z o n A s P u b l i c A t i o n f o r t h e c o m m e r c i A l r e A l e s t A t e i n d u s t r y

Company profile: AlliAnce BAnk exeCutive profile: HeAltHcAre trust of AmericAs cHelseA mAddox

latest industry updates: finAnce, legAl, industriAl Cem-az.Com issue 2, 2013

Profiles on 12 of tHe VAlleys moinfluentiAl women in tHe commercreAl estAte industryWomen in poWer

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CommercialExecutivemagazine

Execve Profle

Chelsea Maddox is a builder, but not in the

conventional sense. As director o leasing,

South/Southwest Region, or Healthcare Trust

o America, Inc. (HTA),Chelsea oversees the

leasing o 3.4 million square eet o medical

ofce space owned in Arizona and six other states. In this

role, she intends to build a leasing brand or HTA.

My ultimate goal is to make HTA the preerred medi-

cal ofce building (MOB) landlord in the Southwest,

said Maddox, who beore joining HTA was a senior asso-

ciate with Cushman & Wakefeld in the frms health care

division where she represented a national tenant base.

HTA strives to be the go-to MOB owner or health care

tenants and health systems, and to build a consistent

leasing brand throughout the South/Southwest. The leas-

ing team at HTA will bring new energy and enthusiasm to

every deal we encounter, and will take pride in each and

every deal we touch.

Capital partnErships an

idEal approaCh

HTA seeks to partner with hospital systems, oering a

source o capital to allow them to monetize their assets

and ree up resources or hospital improvements and

expansion. Healthcare systems have a vested interest in

the medical ofce buildings on their campuses because

those MOBs house some o their greatest assets their

physicians, she explained, These buildings, however,

are expensive to own and manage and HTA can assist

by becoming the hospitals capital partner, Maddox

said. Hospitals want to keep their employed physicians

happy specifcally with regard to the real estate assets

they occupy.

Owning, leasing and managing MOBs is what

HTA does. As a healthcare REIT with a national asset

management platorm, we have knowledge, resources,

and economies o scale which allow us to manage

MOBs efciently. We truly understand the nuances o a

physicians real estate needs, and by allowing HTA to step

in and take that responsibility o the hospitals plate,

were able to ensure that their physicians are provided

with the best possible experience rom a proessional,

experienced MOB landlord.

That approach has met with considerable success.

HTA-owned buildings are 91 percent occupied across

the companys 12.6 million-square-oot portolio. In

Arizona, HTA owns 1.3 million square eet o medical

ofce space.

plEnty of spaCE to foCus on

Maddox will be instrumental to the ongoing expansion

o HTAs portolio in the Southwest region, including

Caliornia, Arizona, Nevada, New Mexico, Utah,

Colorado and Texas. This region represents more than

30 percent o HTAs overall portolio. When considering

acquisitions, HTA looks or buildings that are highly

occupied, well-located (on or near a hospital campus),

and strategically aligned with dominant health systems,

A brAnd-

new dAy

New HTA leAsiNg direcTor

is deTermiNed TomAke A differeNce

by debrA GelbArt

Copyright 2013 by MP Media, LLC


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Executive Profle


Chelsea Maddox

direcTor of leAsiNg,

souTH/souTHwesT regioN,

HeAlTHcAre TrusT of

AmericA, iNc.


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CommercialExecutivemagazine

Execue Prole

said Maddox, who works directly with HTAs EVP o

Asset Management, Amanda Houghton.

Once a building becomes part o the HTA portolio,Maddox and her teamsenior leasing associate

Katie Kelley, leasing associate Sumer Riddle and

leasing coordinator Patti Perkins get to work.

At HTA, we are extremely orward-thinking,

entrepreneurial and certainly motivated to get

results, Maddox said. We bring resh ideas to the

traditional methods o structuring deals. REITs

traditionally have taken a cookie cutter approach to

leasing. We acknowledge that were going to need to

evolve with healthcare and demonstrate creativity

in the way we look at deals to accommodate the

changing needs o our existing and prospective

tenants. With that said, we are accountable not only

to our tenants but also to our shareholders, so each

lease negotiation has a denite balance. However,

when you own well maintained buildings in premier

locations, leasing discussions are always a bit easier.

She encourages inquiries, she said, rom third-

party brokers representing physicians and hospital

systems in each o her markets. We know our

markets and aim to be air and collaborative in every

lease negotiation.

hEalth CarE rEform will drivE

ChangEs in lEasing nEEds

The Aordable Care Act, known colloquially as

health care reorm, will bring changes to the

marketplace that Maddox and her team already have

planned or. An additional 30 to 40 million people

will be newly insured, causing an increase in patient

volume and depleting the supply o unctional

medical oce space.

Implementation o the Aordable Care Act will

change patterns o delivering medical care, she

said, explaining that more and more physicians will

locate their oces in close proximity to hospitals

and outpatient surgical acilities so they can more

easily monitor patients who require more complex

care. That demand will drive up rental rates in 2013or high-quality, ecient and well-located medica

oce buildings, she said. We are seeing increased

demand or larger spaces rom practice groups who

are joining together. Specialists who need easier

access to hospital acilities and equipment wil

congregate in on-campus buildings and genera

practice physicians will continue locating out in the

communities, closer to their patient base.

Since HTA is an MOB-ocused REIT, we are more

interested in outpatient medical visits than hospital

based care, Maddox said. Health care providers

will respond to new demands or medical oce

space by increasing capacity, and we will provide

them with the space in which to accommodate tha

increased patient volume. More procedures will be

perormed due to this growing insured population

and perorming these procedures has become ar

more cost eective in MOBs than in hospitals. She

also predicted that increased demand or medica

oce space wont necessarily result in renovating

existing space especially conversion o traditiona

oce space to medical. The cost to repurpose

general oce space is actually more expensive

than building rom the ground up, she said

Repurposing isnt a viable option in many cases

because its not cost-eective. We acknowledge tha

well need to be fexible with the conguration o

space within our building walls. Fortunately, thats

easy to accomplish in our MOBs, HTA already owns

MOBs in premier locations, which puts us a step

ahead o our competition.

In 2012, she pointed out, providersboth

physicians and hospitalsbegan looking to commi

to longer-term leases or quality space adjacent to

or on a hospital campus. While markets dier,

she said, we are seeing a signicant increase in

Healthcare systems have a vested interestin the medical ofce buildings on their campuses

because those MOBs house some of their greatest

assets their physicians. These buildings, however,

are expensive to own and manage and HTA can assist

by becoming the hospitals capital partner. Chelsea Maddox


HTA Key FAcTs:

eNTerprise VAlue:

$3.5 Billion

gross leAsAble

AreA (sf): 12.6 Million

occupANcy: 91.1%

% mob: 90%

sTATes: 27

crediT rATed

TeNANTs: > 56%

2012 TeNANT

reTeNTioN: 87%

ANNuAl reTurNs siNceiNcepTioN*: 10.4%

diVideNd / yield:

$0.575

iNVesTmeNT grAde

crediT rATiNgs:

BBB- / Baa3

* A mah 11, 2013


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Executive Profle


leasing activity across our major markets, including

Indianapolis, Atlanta and Phoenix.

She expects that this trend will continue through-

out 2013. Health systems are actively recruiting

physician groups, creating demand or supplemen-

tal medical ofce space, she said. Vacancy rates

will decline over the next 12 months, given the

steady demand or space originating rom large

group practices and the hospital systems.

She said the medical practices most aected by

health care reorm are smaller physician groups

without hospital afliation. These smaller physician

groups have already or are considering joining with

a health system versus continuing to operate and

compete as a stand alone practice. In many cases, we

have ound that given the added requirements and

costs to conorm with ederal reorm standards, it

oten makes sense to combine operations with other

smaller practices, share resources and ultimately

increase efciencies i the physician groups are not

joining with a health system. Also struggling are

practices ocused on senior care and dependent

on Medicare and Medicaid reimbursements, as

healthcare reorm has taken a toll on reimbursement

rates in such categories.

For the last 2 years, HTA has ocused on in-

housing its property management. Now nearly 80%

o our portolio is managed in-house and we are

reaping benefts rom doing so by visibly increased

retention rates and decreased costs. For the next

2 years, our leasing platorm is our ocus. My role

with HTA oers the opportunity to create a superior,

best-in-class leasing brand, and you can expect

we will do things dierently to achieve. Im really

looking orward to whats ahead or my team and

or HTA. l

u strella Meical Center

9301 & 9305 wt Tha radphnx, AZ

qWebb Meical Plaza Builing B14418 wt mk buvadsun cty wt, AZ

u desert Rige Meical Campus20940 & 20950 N. Tatu buvad

phnx, AZ

To leArN more, VisiT:

www.htareit.com

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