HOUSTON-A South Florida-based partnership has obtained $5.23 million in permanent financing to acquire the 42,439-sf St. Joseph Medical Plaza on 1.5 acres in the CBD. The off-market transaction, completed through a direct deal, marks the buyer's first entry into Texas.
The late 1970s-constructed building was purchased by the seller, locally based Republic St. Joseph Property LP, during 2002, and is appraised at $3.08 million. "They expanded the building, fixed up the rent roll, stabilized things, got it running, then sold it to the next guys," explains John Burke, managing director/senior vice president in NorthMarq Capital Inc.'s Houston office.
Burke, who arranged the financing through CitiGroup of New York City, adds that the 100%-leased building's roll is not substantial, as the seller had been working it for the past two years. "It's stabilized, fully leased and doing very well," comments Burke of the facility at 2101 Crawford St., near St. Joseph Hospital. He adds that because the former owners did such a strong renovation job, the buyers won't need to make improvements.
Burke tells GlobeSt.com that the buyers obtained a 10-year fixed-rate loan with a 30-year amortization and a competitive interest rate. "This wasn't a difficult one to place, as it was a solid property," Burke adds. "Medical offices are in demand right now, particularly in Houston, and there's a lot of activity there."
The buyer, he continues, plans more acquisitions and investments in the area. "They're a new client and definitely have an interest in expanding their activities here," he adds.
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