$55M Specialty Medical Campus Will Rise in Bellaire

The medical properties' REIT worked out an 18-year lease with Foundation Surgery Affiliates to operate the $33.2-million, acute-care hospital for orthopedic and neurological surgeries. The Foundation Surgical Hospital is backed by a Houston-area consortium of 24 orthopedic surgeons and neurologists, led by Drs. Henry J. Blum, William J. Bryan and Stanley C. Jones.

The contract is the second one between the consortium and Oklahoma City-based, for-profit operator and a first-time teaming with Windrose. "We hope to deepen our relationship with this professional and successful operator as a consequence of this project," Fred Farrar, Windrose president and COO, tells GlobeSt.com.

Windrose acquired 4.6 acres at 5410 and 5420 W. Loop South in April from Eagle WHTV Ltd. of Houston. The hospital and four-story medical office building will deliver simultaneously in fourth quarter 2005. The $22-million office building, complemented by a 377-space parking garage, is 81% preleased.

Windrose's in-house team is completing the architectural drawings to develop a guaranteed maximum price with the contractor, Hospital Affiliates Development Corp., a development subsidiary, and arrange financing through its primary lender, Huntington National Bank of Columbus, OH. The developer expects several physicians in the consortium and the operator will have ownership stakes in the office building.

Foundation Surgery Affiliates, founded in 1996, has 10 outpatient facilities in various stages of planning and development and is minority owner and manager for 12 ambulatory surgery facilities and two imaging centers in Texas and Pennsylvania.

The Windrose portfolio has more than one million sf in 28 properties in nine states. The package includes two medical office buildings in the Houston region, two in San Antonio, three in El Paso and one in Lewisville, north of Dallas.