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Health Care Firm Takes Big Office Block In AllianceTexas Project In North Fort Worth

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An Indiana-based health care firm has leased a huge block of office space in the AllianceTexas development in North Forth Worth.

American Specialty Health Inc., a 32-year-old firm that serves millions of customers across the United States, has rented 164,000 square feet of offices in the Heritage Commons office complex near Interstate 35W to expand its North Texas operations. The company currently has an office in Southlake.

Mercedes-Benz Financial Services previously occupied the office American Specialty Health is moving into. The automaker finance unit has moved to a new building. American Specialty Health plans to move to the new location next month.

“American Specialty Health continues to grow rapidly, and expanding our workforce in Texas is central to our ongoing success,” co-founder, chairman and CEO George DeVries said in a statement. “As such, it’s vital we offer our employees an environment that meets the demands of today’s tech-driven workforce, and AllianceTexas checks all of the boxes. With access to a talent-rich labor market, a variety of residential options, lifestyle amenities and an established community, our company is poised to grow and thrive in North Texas for years to come.”

American Specialty Health provides musculoskeletal health solutions, fitness and exercise programs and health management services to employer groups, health plans, insurance carriers and others. The firm covers more than 50 million Americans under its benefits administration programs.

Steve Aldrich and Ian Kinne of Hillwood negotiated the new lease with Jenny Schreiner and Jon Altschuler of Altschuler and Co. Griffin Capital Essential Asset REIT owns the building.

The 30-year-old AllianceTexas development is now home to more than 500 companies and more than 61,000 jobs.

 

Source: Dallas News

Examining The U.S. Medical Office Sector: Has It Recoverd In Second Quarter 2019?

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Following a sharp 33% drop in growth during the first three months of 2019, the US medical office sector recovered in the second quarter, reducing activity to a 5% year-over-year decline, according to a Real Capital Analytics report.

However, this improvement was largely impacted by a particular deal in June, in which Welltower purchased a portfolio of 50 medical office buildings from CNL Healthcare for more than $1 billion. Without this substantial transaction, second quarter activity would be down 36% year-over-year, RCA says.

This significant deal offers misleading headline figures, as the individual asset sale volume still fell 32% year-over-year in the second quarter. Though the steady decrease in numbers does not necessarily validate the sector’s future.

Considering the majority of medical offices are situated in suburban areas, the asset pricing often relates to suburban offices overall.

The average cap rate for suburban offices is 7%, while medical office cap rates in the second quarter of 2019 remained lower, averaging 6.6%. However, medical office cap rates were much more similar to suburban asset cap rates, earlier in the cycle.

Source: GlobeSt

Pillar Commercial Expands Dallas Portfolio With $26.3M Acquisition

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Buchanan Street Partners and Carval Investors have sold the 240,000-square-foot Richardson Office Center campus in Richardson, Texas, to Pillar Commercial.

The company bought the asset through its Pillar Real Estate Fund I and obtained a $26.3 million acquisition loan from Bank of Texas, per Collin County public records.

Located at 3001 and 3101 E. President George Bush Highway, the two buildings are adjacent to the Methodist Richardson Medical Center, less than 3 miles from the 2 million-square-foot State Farm campus and close to other healthcare related businesses. The property is 26 miles north of downtown Dallas and 28 miles from the Dallas/Fort Worth International Airport.

The Richardson submarket has steadily built a reputation as a top corporate location, with roughly 750,000 square feet of leases signed in recent years with notable companies relocating to the city, such as Steward Health, Goldman Sachs, Infosys and Raytheon.

Built between 1998 and 1999, the buildings received cosmetic renovations in 2017, according to Yardi Matrix information. The tenant roster includes Genpac, Texas Oncology and Pediatrix Medical Group.

A team from CBRE represented the sellers, while the debt team of Senior Vice President Greg Greene and Vice Presidents Scott Lewis and Matt Ballard arranged the financing on behalf the new owner.

At the beginning of the year, Pillar Commercial partnered with Ascent Real Estate Advisors to acquire another office asset in the city. The joint venture purchased a 121,420-square-foot building from a private family office.

 

Source: Commercial Property Executive