The buyer is MedCap Properties LLC, a private company formed byhealthcare operator First Union Capital Partners and unidentifiedinvestors. The sales roster, which spans 16 states with portfolioclusters in Texas, Tennessee and Florida, represents aboutone-third of HCA's medical office portfolio, most of which arewholly owned and primarily abut hospitals. There are 24 Tennesseefacilities and 18 Florida buildings on the disposition list.

"Very little will change," an HCA source tells Thedisposition is being done so that "hospital CEOs are not burdenedwith managing a building," the source says. "We thought it wasbetter if the hospital CEO could focus on the hospital."Practitioners' offices, rents and services will stay the same, saysthe source, stressing all that is changing is the owner.

Houston is taking the biggest hit, with seven medical officestructures being sold to MedCap. Three buildings are situated alongFannin Street, two along Richmond Avenue and two along the EastFreeway. Next in line is Conroe, located 41 miles north of Houston,with five medical office structures along Medical Center Boulevardnow in the MedCap portfolio. The Corpus Christi region has fourproperties being sold: two along Alamena Street and one each onSouth Padre Island and FM 624. Two medical office buildings alongAlton Gloor in Brownsville have been sold, as has one in El Pasoalong N. Oregon Street.

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