Houston Medical Office Building Sales

by CoyDavidson on September 30, 2017

Texas Orthopaedic & Sports Medicine

Healthcare Trust of America Expands Houston MOB Portfolio

The healthcare sector is increasingly on the radar of institutional real estate investors as the amount of capital pouring into the medical office building sector is robust driven by the recession-resistant fundamentals of this asset class and consistent rates of return. Nationally, publicly traded Healthcare REIT’s have been the most active buyers of medical office buildings in 2017 and that has been the case in Houston as well. Healthcare Trust of America (NYSE: HTA) has been the most active buyers of medical office buildings in the Houston market so far in 2017 with ten (10) assets acquired. Several of these assets were a part of HTA’s $2.25 billion purchase of more than 70 medical office properties from Duke Realty Corp. earlier this year.

Despite the capital flowing into the 1.4 billion square foot outpatient real estate sector from publicly traded REIT’s and private investors, the vast majority of ownership of medical office buildings remains in the hands of Hospital/Health Systems. According  to healthcare real estate data firm Revista, approximately 65% of outpatient real estate is owned by Hospital/Health Systems in the United States.

Colliers International has tracked thirty (30) medical office building sales in the Houston marketplace so far in 2017 for buildings greater than 10,000 square feet.

2017 Houston Medical Office Building Sales (Q1 – Q3)

PropertySquare FeetPurchaser
Medical Place 1170,554Medical Properties Trust
George W. Strake Medical Building458,569Medical Properties Trust
St. Joseph Woman's Outpatient Center102,946Medical Properties Trust
Kingwood Professional Plaza32,100MedProperties Holdings
Oak Bend Doctors Center - Grand Parkway60,000MedProperties Holdings
Oak Bend Doctors Center - Southwest56,175MedProperties Holdings
Sugar Land Medical Pavilion78,616Norvin Properties
11301 Fallbrook61,866NAI Properties
Houston Hospital for Specialized Surgery34,600Inland Real Estate Acquisition
USPS Surgical Institute37,000Inland Real Estate Acquisition
3074 College Park14,573 Dream Medical Management
Memorial Hermann Medical Plaza I71,224Healthcare Trust of America
Memorial Hermann MOB II98,862Healthcare Trust of America
8619 Broadway19,760Rose Rock Capital
Houston Methodist St. Catherine MOB 148,542Healthcare Trust of America
Houston Methodist St. Catherine MOB 272,107Healthcare Trust of America
Houston Methodist St. Catherine MOB 348,210Healthcare Trust of America
Memorial Hermann Physicians Pavilion30,000Everest Medical Core Properties
Richmond Bone & Joint Clinic - UT Physicians42,310Everest Medical Core Properties
Richmond Bone & Joint Clinics UT Physicians38,506Everest Medical Core Properties
North Cypress Emergency Room - Willowbrook17,071Healthcare Trust of America
North Cypress ER & Imaging Towne Lake32,766Healthcare Trust of America
North Cypress Professional Building I151,314Healthcare Trust of America
North Cypress Professional Building II163,550Healthcare Trust of America
Fresnius Medical Care Center - Pasadena11,570KB Property Advisors
Memorial Hermann Northeast Medical Plaza I80,148Healthcare Trust of America
Memorial Hermann Convenient Care - Studemont44,000Healthcare Trust of America
21660 Kingsland15,503GMG Kingsland LLC
Texas Orthopaedic Sports Medicine37,200Inland Real Estate Acquisition
Panther Creek Professional Plaza18,448Alden Land Developmetns

Source: Colliers International, CoStar, Real Capital Analytics, Revista

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