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10 Texas Medical Office Building Updates From The First Half Of 2023

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The market for medical office buildings has been booming this year, as investors and real estate managers have touted their stability and upside potential.

Here are 10 Texas medical office building updates from 2023:

  1. A 40,000-square-foot building in Stafford, Texas, that sits on 3.4 acres was sold.
  2.  Ground was broken on a 60,000-square-foot office, the Frisco Medical Pavillion II, set to open in 2024.
  3. A 31,247-square-foot medical office building in Plano, Texas, anchored by Dallas Neurological and Spine, was acquired by Montecito Medical.
  4. Wolf Capital Partners acquired the newly rebranded HeightsMED building, launching renovations that are expected to be complete in mid-2023.
  5. Big Sky Medical acquired a 110,465-square-foot medical office building with rentable space in El Paso, Texas.
  6. The Memorial Hermann Medical Plaza in Houston was awarded an Energy Star certification by the U.S. Environmental Protection Agency.
  7. Remedy Medical Properties and Medical Facilities Holdings completed a 59,741-square-foot medical office building in San Antonio, Texas, that is anchored by a Physician Surgical Network Affiliates ASC.
  8. An 82,328-square-foot Methodist Southlake (Texas) medical office building outside of Fort Worth, Texas, attached to a Methodist hospital sold.
  9. The 61,660-square-foot medical office building the Medical Center of Tomball (Texas) has been purchased for $24.6 million.
  10. Two Texas residents are in custody for burning down a three-story medical office building under construction in Spring, Texas.

 

Source: Becker’s ASC Review

Caddis Healthcare Building 60K-Sq-Ft Medical Office In The Dallas-Fort Worth Suburb Of Frisco

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One of the state’s largest medical-facility developers is bringing a new medical office to the DFW suburb of Frisco.

Caddis Healthcare Real Estate, whose portfolio includes over $1 billion in acquisitions and developments across the Lone Star State, is set to build a three-story, 60,000-square-foot medical office in Frisco for $12 million.

The project will start construction at the beginning of next year and is expected to be finished in early 2024. It will include a three-story core building and a shell medical building for staff and equipment ready for a tenant-specific buildout.

Investment in Texas healthcare real estate is hot this year. BMO Harris and Synovus Bank just provided $200 million in funding for a joint venture between Dallas-based Big Sky Medical and Bahraini investor GFH back in August. That project will include 13 medical office buildings across Texas and seven other states.

South Florida investor Salvan Capital also purchased a Dallas medical center for $7 million earlier this year to expand its now $26 million national medical portfolio.

Caddis currently has over 80 assets under management across Texas totaling 5 million square feet, across the state’s major metros.

 

Source: The Real Deal

GFH Financial Group Acquires U.S. Medical Offices Portfolio In $400M Deal

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GFH Financial Group, an investment bank based in Bahrain, has acquired a portfolio of medical clinics in the US in a deal valued at $400 million, expanding its real estate portfolio in the world’s largest economy.

The income-yielding medical clinics portfolio consists of 11 assets with more than one million square feet of space and is spread across California, Texas, Maryland and Louisiana, GFH said.

“We are pleased to announce the acquisition of this prime, income-yielding medical clinic portfolio as part of GFH’s ongoing expansion in the medical office building sector in fast-growing cities across the US,” Nael Mustafa, co-chief investment officer of real estate at GFH, said. “We believe strongly in the long-term fundamentals in the healthcare sector and the dynamics that are supporting an increase in demand for high-quality medical office space.”

To date, GFH has built a portfolio of assets in the US medical office building sector valued at $1 billion. In December, it acquired a portfolio of medical offices in the US in a deal valued at $200M. The medical offices portfolio consists of 11 assets with more than 400,000 square feet of space spread across North Carolina, South Carolina, Georgia, Utah, Wisconsin, Ohio and Texas.

The latest portfolio is anchored by investment-grade credit tenancy through Baylor Scott & White (Moody’s Aa3), Texas A&M Health Science Centre (Fitch: AAA), Texas Tech University (Fitch AA+), Memorial Hermann (S&P A+) and Tidal Health (Moody’s Aa3), GFH said. The assets also offer unique specialisations within their respective submarkets, positioning them for high occupancy and rent growth, it added.

The medical clinics sector has been strong performing and proven to be highly resilient to economic downturns — with 99 per cent rent collection during the Covid-19 pandemic. The sector also benefits from population growth and the aging US population accompanied by an increase in healthcare expenditure, which accounted for nearly 19 per cent of the US GDP last year, GFH said.

“Aging populations and growth in outpatient care … continue to make the sector highly recession-resilient and unimpacted by economic cycles. We look forward to working with our partner Big Sky Medical to maximize the value of these assets,” Mr Mustafa said.

GFH’s partnership with Big Sky has resulted in a number of acquisitions totalling nearly $500M in the past six months. This transaction is the third in a series of joint acquisitions.

GFH Financial Group reported a 10 per cent increase in its second-quarter profit as investment banking income and income from co-investments rose as the company continues to boost its portfolio around the globe.

Net profit attributable to shareholders of the bank for the three months to the end of June climbed to $23.06M compared with $20.92M during the same period last year.

 

Source: The National News