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HOUSTON-One of the few “for-profit” properties in the Texas Medical Center has been placed on the market: the 154,950-sf Baylor College of Medicine Faculty Center, formerly Medical Towers. The long-time owners hang the “for sale” sign after signing Baylor to a long-term renewal.

“There are many buildings in the area that are larger, but they’re non-profit and for educational purposes only. This is one of a few for-profit properties there and one of the major ones,” says Jim Savage, senior managing director with Holliday Fenoglio Fowler LP’s Houston’s office. Savage along with HFF colleague Jeffrey Hollinden is marketing the office-and-retail building at 1709 Dryden Rd.

Built in 1954, the class B structure was renovated earlier this year. Harris County has the asset assessed at $11.3 million.

Savage tells GlobeSt.com that the property should have an attractive cap rate, thanks to Baylor’s strong credit. The owner of record is Medical Towers Ltd., a trio of local investors who have held the property for 20 years. To Savage’s knowledge, the Baylor-leased building is their only holding in the Greater Houston area.

Baylor, the only tenant on the office side, has been in the space practically since it opened via a gross lease arrangement. In September, Baylor re-upped its lease for an additional seven years, with the contract allowing for four 10-year renewal options. According to industry reports, class B lease rates in the medical center are $21.60 per sf.

The structure’s 23,000-sf retail component also is fully leased. The roster includes Chipotle, Amegy Bank, CVS and Cingular.

“The location is very attractive, which is why Baylor wanted it,” Savage explains. The building is situated between Main and Fannin streets.

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