Rockwall Medical Office Building, 1005 W. Ralph Hall Pkwy., isan 85,117-sf building constructed in 2006. Houston-based PM Realtydeveloped the building in partnership with Quorum Equities GroupLLC of Dallas as part of its 40-acre Horizon Ridge Park, aspreviously reported by GlobeSt.com. The medical office building is85% leased with 20% of the building occupied by Lake Pointe MedicalCenter. The asking lease rate for the building is $26.50 per sf,says Michael Gordon, AVP of acquisitions of Harrison. The buildingis adjacent to the Presbyterian Hospital of Rockwall, an 80-bedfacility which is expected to open later this year.

The Hilo Medical Building, 45 Mohouli St., is a 22,751-sfbuilding built in 1996. Hawaii Health System Corp. has a lease forthe entire building through June 30, 2017, Gordon says. HawaiiHealth Systems Corp. signed a 10-year, $8-million lease for themedical building space to expand its outpatient facilities, aspreviously reported by GlobeSt.com. PM Realty had represented thenlandlord Glacs LLC, in the lease transaction. The average askinglease rate for medical office space in the area is $32.50 per sftriple net, Gordon says. The building is less than one mile fromHilo University Campus. The building reportedly had an asking priceof nearly $11.5 million. Glacs had acquired the building in 2004for $6 million, sources say.

The joint venture between Harrison and Montecito will focus onmedical office buildings, particularly those located near hospitalsand universities, with a likely geographical focus in the southwestand southeast. It will be a value-add portfolio with propertiesthat the joint venture will lease up and will need capitalimprovements, Merrill says. Both medical office buildings inRockwall and Hilo will have improvements such as upgrades to theelevators, lobby and corridors, he says.