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World’s Largest Life Science Campus Launches In Texas

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Texas Medical Center has begun construction on the $1.8 billion first phase of the 37-acre megaproject.

Houston’s place in the U.S. and the world as a major life science cluster takes a big step forward as Texas Medical Center begins construction of the $1.8 billion first phase of a 37-acre, 6 million-square-foot life science campus known as TMC3.

Dubbed the world’s largest life science campus, the TMC3 master plan was designed by Boston-based Elkus Manfredi Architects, a key player in shaping several of the leading life sciences clusters in Massachusetts.

The TMC3 project expands on the more than 60 institutions and 100,000-plus employees already located at Texas Medical Center, the largest medical center in the world. William McKeon, TMC president & CEO, said in a prepared statement TMC3 extends the medical center’s collaboration to Fortune 100 life sciences companies and entrepreneurial ventures.

Phase One is backed by $1.8 billion in financing from leading life science investment and property development teams. It includes two buildings totaling 950,000 square feet—a 700,000-square-foot research facility and a 250,000-square-foot collaborative building developed by Beacon Capital Partners and their strategic partner Braidwell, a life science-focused investment firm.

The initial phase will also feature a hotel with more than 500 keys and 65,000 square feet of conference space; a 350-unit residential tower; more than 2,000 parking spaces and 18.7 acres of public space. Helix Gardens, part of the landscape design by Mikyoung Kim, will feature a chain of five public parks and a central garden for outdoor receptions, concerts, graduations and other large-scale events.

A Promising Future

Alex Karnal, co-founder & chief investment officer at Braidwell, said in a prepared statement TMC3 will be a model of how to empower an ecosystem of expertise at tremendous scale. In addition to its partnership with Beacon, Braidwell is expected to bring its expertise in making multi-stage life science investments to fuel growth of companies that will be operating on the TMC3 campus.

Noting it’s an unprecedented time for life sciences and innovation in the U.S., Steve Purpura, president of life science at Beacon Capital Partners, said in prepared remarks Houston has all the factors required for explosive growth in the life sciences space. He also credited TMC with seeding innovation, building relationships with the world’s largest life sciences companies and creating the infrastructure needed for long-term success.

TMC3 is expected to generate about $5.4 billion in economic growth for the state each year, including the creation of more than 23,000 new permanent jobs and about 19,000 construction jobs.

Other TMC3 campus collaborators include Majestic Realty, Transwestern Development, The University of Texas MD Anderson Cancer Center, Texas A&M University Health Science Center and University of Texas Health Science Center at Houston.

Another Houston Project

In February, Hines and 2ML Real Estate Interests released renderings of the 53-acre life science district in Houston known as Levit Green that will be adjacent to the Texas Medical Center. The mixed-use development’s first phase will include a 270,000 square-foot laboratory and office building as the centerpiece. The five-story building will include a 7,000-square-foot conference center; 5,800-square-foot fitness facility; café and restaurant space and an outdoor garden. Levit Green will eventually have more office components as well as residential, retail and hospitality space.

 

New Loans Lined Up For Texas Medical Office Buildings

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The owners of two recently built medical office buildings in Sugar Land and the Museum District have refinanced the properties.

American Commercial Contractors obtained a $16.1 million loan to refinance Sugar Land Physicians Center, a 56,063-square-foot medical office building at 7616 Branford Place in Sugar Land.

1of2American Commercial Contractors obtained a $16.1 million bridge loan to refinance Sugar Land Physicians Center, a 56,063-square-foot medical office building at 7616 Branford Place in Sugar Land. CBRE arranged the loan. (PHOTO CREDIT: CBRE)

Dana Summers, Bruce Francis, Bob Ybarra, Shaun Moothart, Doug Birrell and Jim Korinek of CBRE arranged the three-year loan from Money360. The three-story building was built in 2014 near several hospitals, including CHI/St. Luke’s, Methodist and Memorial Hermann.

“The borrower needed to refinance a bridge loan that was coming due, but the property was not in a position for a permanent loan,” Dana Summers of CBRE said in an announcement. “Although occupancy history and stabilization of the property were in flux, our team was able to secure an interim capital solution that would bridge the borrower for a short-term period until permanent financing is placed.”

2of2Houston-based Balcor Commercial obtained a 30-year loan from Principal Real Estate Investors to refinance the 50,000-square-foot Parc Binz building at 1800 Binz St. Berkadia arranged the loan.(PHOTO CREDIT: Berkadia)

In the Museum District near Hermann Park and the Texas Medical Center, Balcor Commercial secured a 30-year loan to refinance the 50,000-square-foot Parc Binz building at 1800 Binz St. Balcor is a Houston-based commercial real estate services provider.

Cutt Ableson of Berkadia secured the 30-year, fixed rate loan through Principal Real Estate Investors. Terms were not disclosed.

“With Houston’s medical office market continuously expanding beyond the boundaries of the Texas Medical Center, well-located assets similar to Parc Binz are primed for additional occupancy while maximizing returns,” Ableson said in an announcement. “Consistent demand, coupled with a long-term life insurance company debt package from Principal provide a compelling hold period for this asset.”

 

Source: Houston Chronicle

Texas A&M To Build $546M Complex In The Texas Medical Center

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The Texas A&M University system just announced that it will spend more than half a billion dollars to build a new complex in the Texas Medical Center.

The $546M price tag will include the construction of two new towers, as well as the purchase and renovation of a third building. Texas A&M has already acquired 1020 Holcombe Blvd., an 18-story building that is undergoing renovations. The building will be used for the university’s two-degree Engineering Medicine program, which will allow students to earn a master’s degree in engineering from Texas A&M, as well as a medical degree from the university’s Health Science Center.

The purchase and renovations are expected to cost $145M, and the overall project is expected to be completed by the summer. In addition, Texas A&M will build two new towers: a student housing project, and a mixed-use development for medical offices and retail. The mixed-use building is an integrated medical plaza. The 30-story, 587K SF building will contain 72K SF of retail space and 8,700 SF of green space, and will also include a 13-story parking garage and a grocer.

“We’re looking for a grocer for this because we’re trying to support our EnMed students and our Prairie View students. This is the catalyst, and have them a nice, safe place to live,” Texas A&M Vice Chancellor of Business Affairs Phillip Ray said at a press conference.

The medical plaza is expected to break ground in the fall of 2021, and completion is slated for June 2023. The student housing project will be a 19-story, 365K SF building with 572 units and 704 beds. It will include a 1.2M SF parking garage with 3,444 spaces. The project is expected to break ground in October, and is slated for completion in June 2022. Both projects will be constructed through public-private partnerships. The combined price tag of the two new projects is $401M.

Texas A&M Chancellor John Sharp told attendees at the press conference that the new complex would help bring the assets of the Texas Medical Center to the rest of the state.

“What we want to do is take the future of medicine, which is embodied in the Engineering Medicine program, where really smart kids are going to become the developers of the medical care technology of the future,” Sharp said.

“We’ve done a little over $2B in P3, privately funded projects during Chancellor John Sharp’s tenure, and this will be the largest one,” Ray said.

Sharp has been chancellor since 2011. The developer of the P3 projects is Medistar Corp. American Triple I Partners, founded by Texas A&M alumni Henry Cisneros, is part of the financing team. EYP led the design of the renovated building, while Kirksey Architecture designed the two new towers. Linbeck Group will construct the two new buildings, while Vaughn Construction is the contractor for 1020 Holcombe Blvd.

 

Source: Bisnow