X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Malcolm Gluckman of the Houston office of CB Richard Ellis Inc. tells GlobeSt.com that interest from investors has been focused lately on medical buildings. “Investors like the permanency of the tenants,” says Gluckman, who credits a heavy build-out cost that is usually shared by the tenant as reasons for longer occupancies.

Gluckman says the average medical building build out is $35 to $45 per sf. Evidence of this trend is seen in the recent sales of buildings in Houston and the south Texas city of Victoria. A medically-oriented company bought the Houston building while the Victoria building is an existing medical facility.

Galveston-based insurance company Westcap Corp. recently sold its 58,000-sf office building at 2575 West Bellfort in Houston to DNA sequencing company, Seawright Inc. Houston-based Seawright plans to occupy part of the building for their operations and lease out the rest.

Constructed in 1984, the building was the former headquarters of Stage Stores. After declaring bankruptcy, Stage moved out of the building in the Spring of 2000. Westcap foreclosed on the building and subsequently put it up for sale.

Gluckman represented Westcap in the transaction. W. Derrell Curry and Mark O’Donnell, also of the Houston office of CB Richard Ellis represented Seawright in the deal. The brokers won’t disclose the sales price, but the asking price for the building was $3.5 million. Gluckman says the building was attractive to the buyers because of its proximity to Houston’s Medical Center.

A 55,437-sf medical building at 6502 Nursery Drive in Victoria was sold to California-based investment group La Nova Partners. T and F Properties, LP, a subsidiary of Boston-based medical REIT, Meditrust sold the building. Gluckman represented the seller in this deal as well.

Gluckman says Meditrust is liquidating parts of its medical portfolio. The building is 88%-occupied and was constructed in 1996. The advertised asking price for the facility was $4.2 million. The buyers used in-house representatives to close the deal. Gluckman says there were a number of full-price offers on this building, confirming interest in this product type.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.