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Acquisitions, Dispositions and Mortgage Repayments
 12 Months Ended
Dec. 31, 2014
Acquisitions and Dispositions and Mortgage Repayments [Abstract]  
Acquisitions, Dispositions and Mortgage Repayments
Acquisitions, Dispositions and Mortgage Repayments
2014 Real Estate Acquisitions
During 2014, the Company acquired the following properties:
•
a 152,655 square foot multi-tenanted office building in Iowa in which the Company acquired ownership in satisfaction of a $40.0 million mortgage note receivable that matured on January 10, 2014. The cash flows from the operations of the property were sufficient to pay the Company interest from the maturity date through the date of the transfer of ownership to the Company at the 7.7% fixed interest rate plus an additional 3% of interest for the default interest rate. The Company has accounted for this transaction as a business combination and recorded the acquisition of the property at its estimated fair value based primarily on level three inputs. Upon acquisition, the property was 93% leased with expirations through 2023;

•
a 200,000 square foot medical office building in Oklahoma for a purchase price of approximately $85.4 million that was 100% leased to Mercy Health, based in Missouri, through 2028 under a single-tenant net lease. The Company funded the development of the facility through a construction mortgage loan of approximately $81.2 million that upon purchase was eliminated in the Company's Consolidated Financial Statements. At the closing of the purchase, the outstanding loan balance was credited to the purchase price and the Company paid an additional $4.2 million in cash consideration. Subsequent to the purchase, the Company funded an additional $5.0 million and anticipates funding approximately $0.8 million to complete the $91.2 million development during 2015;

•
56.9% of a medical office building and related land in Texas through an equity interest in a limited liability company for a purchase price and cash consideration of $8.7 million. Based on the nature of the transaction, the Company has accounted for the acquisition as an asset acquisition and has recorded the amounts in real estate assets on the Company's Consolidated Balance Sheet. Upon acquisition, the property was 95% leased with expirations through 2024. The building is adjacent to Seton Medical Center, a 534-bed hospital;

•
a 35,292 square foot medical office building located in North Carolina for a purchase price and cash consideration of $6.5 million. Upon acquisition, the property was 100% leased with expirations through 2024. The building is adjacent to Wesley Long Hospital, a 175-bed hospital;

•
a 60,476 square foot medical office building located in Minnesota for a purchase price of $19.8 million including cash consideration of $8.4 million and the assumption of debt of $11.4 million (excluding a $1.0 million fair value premium recorded upon acquisition). The mortgage notes payable assumed by the Company bear a weighted average contractual interest rate of 6.67% with maturities from 2017 to 2040. The property was constructed in 2010 and, upon acquisition, was 100% leased with expirations through 2025. The building is connected to Unity Hospital, a 220-bed hospital operated by Allina Health;

•
a 47,962 square foot medical office building located in Florida for a purchase price and cash consideration of $7.9 million. Upon acquisition, the property was 89% leased with expirations through 2019. The building is adjacent to Tampa General Hospital, a 1,018-bed hospital;

•
a 68,860 square foot medical office building in Oklahoma for a purchase price of $17.5 million, including cash consideration of $10.7 million and the assumption of debt of $6.8 million (excluding a $0.4 million fair value premium recorded upon acquisition). The mortgage note payable assumed by the Company bears a contractual interest rate of 6.1% and matures on August 1, 2020. Upon acquisition, the property was 97% leased with expirations through 2027. The building is located on the Norman Regional Healthplex campus, a 152-bed hospital; and

•
a 60,161 square foot medical office building in Washington for a purchase price and cash consideration of $22.7 million. Upon acquisition, the property was 98% leased with expirations through 2021 and is located on the Highline Medical Center campus, a 177-bed hospital.

The following table details the Company's acquisitions for the twelve months ended December 31, 2014:
(Dollars in millions)
Date
Acquired
 
Purchase Price

 
Elimination of Mortgage Note Receivable

 
Mortgage
Notes Payable Assumed (1)

 
Cash
Consideration (2)

 
Real
Estate

 
Other (3)
 
Square
Footage

Real estate acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Iowa
3/28/14
 
$
—

 
$
(40.0
)
 
$
—

 
$
—

 
$
40.2

 
$
(0.2
)
 
152,655

Oklahoma
5/22/14
 
85.4

 
(81.2
)
 
—

 
4.2

 
85.4

 
—

 
200,000

Texas
6/4/14
 
8.7

 
—

 
—

 
8.7

 
8.8

 
(0.1
)
 
48,048

North Carolina
6/6/14
 
6.5

 
—

 
—

 
6.5

 
6.5

 
—

 
35,292

Minnesota 
7/28/14
 
19.8

 
—

 
(11.4
)
 
8.4

 
20.9

 
(1.0
)
 
60,476

Florida
9/16/14
 
7.9

 
—

 
—

 
7.9

 
7.9

 
—

 
47,962

Oklahoma
10/29/14
 
17.5

 
—

 
(6.8
)
 
10.7

 
17.9

 
(0.4
)
 
68,860

Washington
12/1/14
 
22.7

 
—

 
—

 
22.7

 
18.9

 
3.8

 
60,161

 
 
 
$
168.5

 
$
(121.2
)
 
$
(18.2
)
 
$
69.1

 
$
206.5

 
$
2.1

 
673,454

______
(1) The mortgage notes payable assumed in the acquisitions do not reflect the fair value adjustment totaling $1.4 million recorded by the Company upon acquisition (included in Other).
(2) Cash consideration excludes non-real estate assets acquired and liabilities assumed in the acquisitions.
(3) Includes intangibles recognized at acquisition and fair value adjustments on debt assumed.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2014 as of the acquisition date:
 
Estimated Fair Value

 
Estimated Useful Life

 
(In millions)
 
(In years)
Building
181.7

 
11.5-39.0

Land
12.7

 
—

Intangibles:
 
 
 
At-market lease intangibles
12.1

 
4.8-13.9

Below-market lease intangibles
(0.4
)
 
3.8-6.5

Above-market ground lease intangibles
(0.1
)
 
91.3

Below-market ground lease intangibles
3.8

 
63.7

Total intangibles
15.4

 
 
Mortgage notes payable assumed, including fair value adjustments
(19.6
)
 
 
Foreclosed mortgage note receivable
(40.0
)
 
 
Elimination of mortgage note receivable upon acquisition
(81.2
)
 
 
Other assets acquired
3.0

 
 
Accounts payable, accrued liabilities and other liabilities assumed
(2.3
)
 
 
Cash acquired
0.2

 
 
Total cash paid (1)
$
69.9

 
 
______
(1) Total cash paid includes receivables acquired net of liabilities assumed in the acquisitions of approximately $0.8 million.

2014 Noncontrolling Interest Purchase
In April 2014, the Company purchased the outstanding 40% noncontrolling equity interest in a consolidated partnership that owns a medical office building and parking garage in Texas, which were developed by the partnership, for an aggregate purchase price and cash consideration of $8.2 million. The book value of the noncontrolling interest prior to the equity purchase was $1.6 million. The remaining $6.6 million was recorded as a decrease to additional paid-in capital on the Company's Consolidated Balance Sheets. The Company held a term loan that was secured by the property and was payable from the partnership. Upon acquisition of the noncontrolling interest, the term loan, which was previously eliminated in the Company's Consolidated Financial Statements, was extinguished.
2013 Real Estate Acquisitions
During 2013, the Company acquired the following properties:
•
a 52,225 square foot medical office building in Tennessee for a purchase price and cash consideration of $16.2 million. The property was 100% leased to four tenants with expirations through 2021 and is adjacent to a 39,345 square foot medical office building the Company purchased in October 2012;
•
a 42,627 square foot inpatient rehabilitation facility in Texas for a purchase price and cash consideration of $16.3 million. The property was 100% leased to one tenant that expires in 2033;
•
a 205,573 square foot medical office building and garage in Indiana for a purchase price and cash consideration of $44.3 million. The property was 87% leased with expirations through 2029. The property is connected to and was 48% leased by St. Joseph's Medical Center, which is part of the CHE Trinity system, that opened in December 2009;    
•
an 80,153 square foot medical office building in Colorado for a purchase price of approximately $33.2 million, including cash consideration of $21.2 million and the assumption of debt of $12.0 million (excluding a $0.7 million fair value adjustment premium recorded upon acquisition). The mortgage note payable assumed by the Company bears a contractual interest rate of 6.17% and matures in 2027. The building was 100% leased with lease expirations through 2028. The property is connected to and was 71% leased by Poudre Valley Health System, which is part of the University of Colorado Health system;
•
a 186,000 square foot orthopedic facility in Missouri for a purchase price of approximately $102.6 million. The Company funded the development of the facility through a construction mortgage loan of approximately $97.2 million that, upon acquisition, was eliminated in the Company's Consolidated Financial Statements. At the closing of the purchase, the outstanding loan balance was credited to the purchase price and the Company paid an additional $5.4 million in cash consideration. Subsequent to the acquisition, the Company funded an additional $6.5 million in 2013 and $2.3 million during 2014 to complete the development. The building was 100% leased to Mercy Health through 2027;
•
an 81,956 square foot medical office building located in the state of Washington for a purchase price of $34.9 million. The property was 100% leased with lease expirations through 2020 and is adjacent to two hospital campuses and affiliated with Providence Health and Services. The Company assumed a mortgage note payable of $16.6 million (excluding a $0.5 million fair value adjustment premium recorded upon acquisition) on the property that bears interest at a rate of 6.01% and matures in 2036;
•
a 70,138 square foot medical office building in Colorado for a purchase price and cash consideration of $21.6 million. The property was on the same campus as the 80,153 square foot medical office building the Company purchased in September 2013. The building was 83% leased to three tenants with lease expirations through 2026. The property is connected to and affiliated with the University of Colorado Health system;
•
a 90,633 square foot medical office building in North Carolina for a purchase price of $20.1 million. The property was 100% leased with expirations through 2021 and is affiliated with CaroMont Health. The Company assumed a mortgage note payable of $11.0 million (excluding a $0.2 million fair value adjustment premium recorded upon acquisition) on the property that bears interest at a rate of 5.86% and matures in 2016;
•
a 97,552 square foot medical office building located in Texas for a purchase price and cash consideration of $19.0 million. The property was 88% leased with expirations through 2026. The property is affiliated with and was 24% leased by Seton Healthcare; and
•
a 34,068 square foot inpatient rehabilitation facility located in Colorado for a purchase price and cash consideration of $7.0 million. Concurrent with the closing on the acquisition, the Company executed a single-tenant net lease that expires in 2029 for 100% of the property. This transaction was accounted for as an asset acquisition.
A summary of the Company’s 2013 acquisitions is shown in the table below:
(Dollars in millions)
Date
Acquired
 
Purchase Price

 
Elimination of Construction Mortgage Note Receivable

 
Mortgage
Notes Payable Assumed(1)

 
Cash
Consideration (2)

 
Real
Estate

 
Other (3)

 
Square
Footage

Real estate acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tennessee
1/29/13
 
$
16.2

 
$
—

 
$
—

 
$
16.2

 
$
15.7

 
$
0.5

 
52,225

Texas
4/8/13
 
16.3

 
—

 
—

 
16.3

 
16.3

 
—

 
42,627

        Indiana
8/8/13
 
44.3

 
—

 
—

 
44.3

 
43.3

 
1.0

 
205,573

        Colorado
9/27/13
 
33.2

 
—

 
(12.0
)
 
21.2

 
32.9

 
0.3

 
80,153

        Missouri
9/27/13
 
102.6

 
(97.2
)
 
—

 
5.4

 
102.6

 
—

 
186,000

        Washington
10/18/13
 
34.9

 
—

 
(16.6
)
 
18.3

 
35.4

 
(0.5
)
 
81,956

        Colorado
10/24/13
 
21.6

 
—

 
—

 
21.6

 
21.7

 
(0.1
)
 
70,138

        North Carolina
10/30/13
 
20.1

 
—

 
(11.0
)
 
9.1

 
20.0

 
0.1

 
90,633

        Texas
12/16/13
 
19.0

 
—

 
—

 
19.0

 
19.1

 
(0.1
)
 
97,552

        Colorado
12/16/13
 
7.0

 
—

 
—

 
7.0

 
7.1

 
(0.1
)
 
34,068

 
 
 
$
315.2

 
$
(97.2
)
 
$
(39.6
)
 
$
178.4

 
$
314.1

 
$
1.1

 
940,925

______
(1) The mortgage notes payable assumed in the acquisitions do not reflect the fair value adjustments totaling $1.4 million recorded by the Company upon acquisition (included in Other).
(2) Cash consideration excludes non-real estate assets acquired and liabilities assumed in the acquisitions.
(3) Includes intangibles recognized at acquisition and fair value adjustments on debt assumed.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2013 as of the acquisition date:
 
 
Estimated
Fair Value

 
Estimated
Useful Life

 
(In millions)
 
(In years)
Buildings
$
280.2

 
7.0-39.0

Land
21.6

 
—

Personal property
0.3

 
1.9

Intangibles:
 
 
 
At-market lease intangibles
12.0

 
3.7-20.0

Above-market lease intangibles
2.9

 
2.3-16.3

Below-market lease intangibles
(0.4
)
 
0.5-7.4

Total intangibles
14.5

 
 
Mortgage notes payable assumed, including fair value adjustments
(41.0
)
 
 
Elimination of mortgage note receivable upon acquisition
(97.2
)
 
 
Other assets acquired
1.2

 
 
Accounts payable, accrued liabilities and other liabilities assumed
(1.9
)
 
 
Total cash paid (1)
$
177.7

 
 
______
(1) Total cash paid includes liabilities assumed net of receivables acquired in the acquisitions of $0.7 million.

2014 Real Estate Asset Dispositions
During 2014, the Company disposed of the following real estate assets:
•
a 52,608 square foot off-campus, medical office building located in Florida in which the Company had a $1.7 million net investment, including the impact of impairment charges recorded prior to the sale of approximately $3.3 million. The sales price was $1.8 million, comprised of $1.7 million in net cash proceeds and closing costs of $0.1 million. This property was previously classified as held for sale;

•
a 58,365 square foot off-campus, medical office building located in Texas in which the Company had a $4.1 million net investment, including the impact of impairment charges recorded prior to the sale of approximately $2.6 million. The sales price was $4.4 million, comprised of $4.2 million in net cash proceeds and closing costs of $0.2 million. This property was previously classified as held for sale;

•
a 31,026 square foot on-campus, medical office building located in Nevada in which the Company had a $4.9 million net investment. The sales price was approximately $2.3 million, comprised of net cash proceeds of approximately $0.2 million, a seller-financed mortgage note of $1.9 million, and closing costs of $0.2 million. The Company recognized a $2.8 million impairment on the disposal of this property that was not previously classified as held for sale;    

•
two off-campus medical office buildings in Tennessee, totaling 32,204 square feet, in which the Company had an aggregate net investment of $3.2 million. The sales price for the buildings was approximately $3.1 million comprised of net cash proceeds of $2.9 million and closing costs of approximately $0.2 million. The Company recognized a $0.4 million impairment on the disposal, net of straight-line rent receivables which were written off. These properties were not previously classified as held for sale;

•
two off-campus medical office buildings in Texas, totaling 166,167 square feet, in which the Company had an aggregate net investment $12.1 million. The sales price and net cash proceeds for the buildings was approximately $21.5 million. The Company recognized a $9.2 million gain on the disposal, net of straight-line rent receivables which were written off. These properties were not previously classified as held for sale;

•
a 26,166 square foot off-campus, medical office building located in Missouri in which the Company had a $1.4 million net investment, including a $3.1 million impairment charge recorded in the second quarter of 2014 as a result of the pending sale. The sales price and net cash proceeds for the building was approximately $1.3 million. The Company recognized a $0.2 million impairment on the disposal, net of straight-line rent receivables which were written off. This property was previously classified as held for sale; and

•
a 110,000 square foot off-campus, medical office building located in Illinois in which the Company had a $0.8 million net investment, including the impact of impairment charges prior to the sale of $5.6 million. The sales price was $0.5 million and the Company recognized a $0.3 million impairment on the disposal. This property was previously classified as held for sale.

2014 Company-Financed Mortgage Notes
During 2014, the Company originated an $1.9 million seller-financed mortgage note receivable with the purchaser of a medical office building located in Nevada. See "2014 Real Estate Asset Dispositions" above for more information.

Also during 2014, two Company-financed mortgage notes receivable totaling $4.9 million were repaid.

A summary of the Company's 2014 dispositions are as follows:
(Dollars in millions)
Date
Disposed
 
Sales Price
 
Closing Adjustments
 
Company-financed Mortgage
Notes
 
Net
Proceeds
 
Net Real
Estate
Investment
 
Other
(including
receivables)
 
Gain/
(Impairment)
 
Square
Footage
Real estate dispositions
Florida (1)
4/11/2014
 
$
1.8

 
$
(0.1
)
 
$
—

 
$
1.7

 
$
1.7

 
$
—

 
$
—

 
52,608

Texas (1)
4/23/2014
 
4.4

 
(0.2
)
 
—

 
4.2

 
4.1

 
0.1

 
—

 
58,365

Nevada
9/12/2014
 
2.3

 
(0.2
)
 
(1.9
)
 
0.2

 
4.9

 
—

 
(2.8
)
 
31,026

Tennessee (2)
11/14/2014
 
3.1

 
(0.2
)
 
—

 
2.9

 
3.2

 
0.1

 
(0.4
)
 
32,204

Texas (2)
11/25/2014
 
21.5

 
—

 
—

 
21.5

 
12.1

 
0.2

 
9.2

 
166,167

Missouri (1)
12/18/2014
 
1.3

 
—

 
—

 
1.3

 
1.4

 
0.1

 
(0.2
)
 
26,166

Illinois (1)
12/29/2014
 
0.5

 
—

 
—

 
0.5

 
0.8

 
—

 
(0.3
)
 
110,000

Total dispositions
 
34.9

 
(0.7
)
 
(1.9
)
 
32.3

 
28.2

 
0.5

 
5.5

 
476,536

Mortgage note repayments
—

 
—

 
4.9

 
4.9

 
—

 
—

 
—

 
—


 
$
34.9

 
$
(0.7
)
 
$
3.0

 
$
37.2

 
$
28.2

 
$
0.5

 
$
5.5

 
476,536

______
(1) Previously included in assets held for sale.
(2) Includes two properties.
2013 Real Estate Asset Dispositions
During 2013, the Company disposed of the following real estate assets:

•
15.1 acres of land in Texas in which the Company had an aggregate net investment of approximately $8.1 million. The sales price was approximately $5.0 million, which included $1.1 million in net cash proceeds, the origination of a $3.7 million Company-financed mortgage note receivable and closing costs of $0.2 million. The Company recognized a $3.3 million impairment on the disposal;

•
a 17,696 square foot medical office building in Tennessee, in which the Company had an aggregate net investment of $0.4 million, including the impact of impairment charges prior to the sale of $1.3 million. The sales price of $0.6 million was funded by the Company under a mortgage note receivable. The approximate $0.2 million gain was recognized as payments on the mortgage note were made under the installment method and fully recognized in October 2013 when the note was repaid. The property was previously classified as held for sale;

•
an 8,000 square foot medical office building in Texas, in which the Company had an aggregate net investment of $0.9 million. The sales price was approximately $1.3 million comprised of $1.2 million in net cash proceeds and closing costs of $0.1 million. The Company recognized a $0.3 million gain on the disposal. The property was not previously classified as held for sale;

•
a 100,920 square foot medical office building in Texas. The Company had an aggregate net investment of $3.0 million in this property, including the impact of impairment charges prior to the sale of $6.8 million. The sales price was approximately $3.2 million comprised of $3.0 million in net cash proceeds and closing costs of $0.2 million. The Company recognized an immaterial gain on the disposal of this property that was previously classified as held for sale;

•
a 9,153 square foot medical office building and a 22,572 square foot medical office building, both in Iowa, in which the Company had an aggregate net investment of approximately $5.3 million. The total sales price and net cash proceeds for the two properties were $6.9 million. In connection with the sales, the Company repaid a mortgage note payable of $1.1 million and incurred debt extinguishment costs of $0.3 million. The Company recognized a $1.4 million aggregate gain on the disposal of the two properties, including the write-off of a straight-line rent receivable of $0.2 million. The properties were not previously classified as held for sale;

•
a 62,782 square foot inpatient rehabilitation facility in Florida pursuant to a purchase option exercise and in which the Company had an aggregate net investment of $7.4 million. The sales price was approximately $11.9 million comprised of $11.7 million in net cash proceeds and closing costs of $0.2 million. The Company recognized a $4.3 million gain on the disposal of this property that was previously classified as held for sale;

•
an 82,000 square foot inpatient rehabilitation facility in Alabama pursuant to a purchase option exercise and in which the Company had an aggregate net investment of $11.2 million. The sales price was approximately $17.5 million comprised of $17.4 million in net cash proceeds and closing costs of $0.1 million. The Company recognized a $6.2 million gain on the disposal of this property that was previously classified as held for sale;

•
a 76,324 square foot inpatient rehabilitation facility in Pennsylvania pursuant to a purchase option exercise in which the Company had an aggregate net investment of $12.2 million. The sales price was approximately $17.6 million comprised of $17.3 million in net cash proceeds and closing costs of $0.3 million. The Company recognized a $5.1 million gain on the disposal of this property. This property was not previously classified as held for sale;

•
a 79,560 square foot inpatient rehabilitation facility in Pennsylvania pursuant to a purchase option exercise in which the Company had an aggregate net investment of $12.6 million. The sales price was approximately $17.6 million comprised of $17.2 million in net cash proceeds and closing costs of $0.4 million. The Company recognized a $4.6 million gain on the disposal of this property. This property was not previously classified as held for sale;

•
a 14,322 square foot medical office building in Florida in which the Company had an aggregate net investment of $0.8 million, including the impact of impairment charges prior to the sale of $0.1 million. The sales price and net cash proceeds received were approximately $0.8 million. This property was previously classified as held for sale;

•
a 57,580 square foot medical office building in North Carolina in which the Company had an aggregate net investment of $13.4 million. The sales price and net cash proceeds received were approximately $17.6 million. The Company recorded a $2.1 million gain on the disposal, net of approximately $2.1 million of straight-line rent receivables, prepaid ground lease payments and above-market lease intangibles which were written off. This property was not previously classified as held for sale; and

•
a 10,593 square foot medical office building in Alabama in which the Company had an aggregate net investment of $1.4 million. The sales price and net cash proceeds received were approximately $1.9 million. The Company recorded a $0.5 million gain on the disposal of this property that was previously classified as held for sale.    
A summary of the Company’s 2013 dispositions follows:
(Dollars in millions)
Date
Disposed
 
Sales Price

 
Closing Adjustments

 
Company-financed Mortgage
Notes

 
Net
Proceeds

 
Net Real
Estate
Investment

 
Other
(including
receivables)

 
Gain/
(Impairment)

 
Square
Footage

Real estate dispositions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas (land)
3/25/13
 
$
5.0

 
$
(0.2
)
 
$
(3.7
)
 
$
1.1

 
$
8.1

 
$
—

 
$
(3.3
)
 
—

Tennessee (1)(4)
4/30/13
 
0.6

 
—

 
(0.6
)
 
—

 
0.4

 
—

 
0.2

 
17,696

Texas
5/15/13
 
1.3

 
(0.1
)
 
—

 
1.2

 
0.9

 
—

 
0.3

 
8,000

Texas (1)
5/24/13
 
3.2

 
(0.2
)
 
—

 
3.0

 
3.0

 
—

 
—

 
100,920

Iowa (2) (3)
6/3/13
 
6.9

 
—

 
—

 
6.9

 
5.3

 
0.2

 
1.4

 
31,725

Florida (1)
7/15/13
 
11.9

 
(0.2
)
 
—

 
11.7

 
7.4

 
—

 
4.3

 
62,782

Alabama (1)
7/31/13
 
17.5

 
(0.1
)
 
—

 
17.4

 
11.2

 
—

 
6.2

 
82,000

Pennsylvania
9/30/13
 
17.6

 
(0.3
)
 
—

 
17.3

 
12.2

 
—

 
5.1

 
76,324

Pennsylvania
9/30/13
 
17.6

 
(0.4
)
 
—

 
17.2

 
12.6

 
—

 
4.6

 
79,560

Florida (1)
10/31/13
 
0.8

 
—

 
—

 
0.8

 
0.8

 
—

 
—

 
14,322

North Carolina
12/5/13
 
17.6

 
—

 
—

 
17.6

 
13.4

 
2.1

 
2.1

 
57,580

Alabama (1)
12/31/13
 
1.9

 
—

 
—

 
1.9

 
1.4

 
—

 
0.5

 
10,593

Total dispositions
 
101.9

 
(1.5
)
 
(4.3
)
 
96.1

 
76.7

 
2.3

 
21.4

 
541,502

Mortgage note repayments
 
—

 
—

 
0.6

 
0.6

 
—

 
—

 
—

 
—

 
 
 
$
101.9

 
$
(1.5
)
 
$
(3.7
)
 
$
96.7

 
$
76.7

 
$
2.3

 
$
21.4

 
541,502

______
(1)
Previously included in assets held for sale.
(2)
Includes two properties.
(3)
The Company repaid a mortgage note payable of $1.1 million upon sale and incurred debt extinguishment costs of $0.3 million.
(4)
The Company-financed mortgage note receivable was repaid in October 2013.
2013 Company-Financed Mortgage Notes
During 2013, the Company originated the following Company-financed mortgage notes receivable in disposal transactions discussed in the "2013 Real Estate Asset Dispositions" section above:

•
$3.7 million with the purchaser of the 15.1 acres of land located in Texas that were sold in March 2013. The mortgage note receivable had an interest rate of 5.0% in the first year and 6.0% in the second year and was to mature in March 2015. This note was repaid in September 2014; and

•
$0.6 million with the purchaser of a medical office building in Tennessee that was sold in April 2013 that was to mature on April 30, 2018 and had an interest rate of 7.5% per annum. This note was repaid in October 2013.
2013 Noncontrolling Interest Contribution
During 2013, the Company received $1.8 million in capital contributions from a 40% noncontrolling interest holder in a partnership that owned a medical office building and parking garage in Texas. The partnership (HRP MAC III, LLC), in which the Company held a 60% majority controlling interest, was the borrower under a term loan from the Company of approximately $14.2 million, secured by the real estate assets, that matures in January 2016 and bears interest at 5.35%. These buildings, which were constructed by the Company, were completed in July 2012 and were previously subject to a construction mortgage note totaling $13.7 million. The Company's equity in and term loan to the partnership were eliminated in consolidation.

2015 Acquisition
In January 2015, the Company acquired a 110,679 square foot medical office building in California for a purchase price and cash consideration of $39.3 million. The property is located adjacent to two hospital campuses, one affiliated with Kaiser Permanente, a 106-bed hospital, and another affiliated with Washington Hospital Healthcare System, a 353-bed hospital. Upon acquisition, this property was 97% leased, with leases to the two hospitals comprising 59% of the rentable square footage.