HOUSTON—The five-building Pin Oak portfolio in the suburb of Bellaire recently sold for an undisclosed price. Norvin Healthcare Properties purchased the portfolio on behalf of its investment partnership, adding to its medical-oriented holdings in the Houston market.
“Being that healthcare is always in demand, medical office properties generally enjoy stable tenancy and insulation from the cyclical nature of other industries,” Rudy Hubbard, JLL managing director, capital markets, investment sales, tells GlobeSt.com. “As a result, we anticipate continued activity in this sector throughout the year, especially as other markets reach cyclical peaks. In Houston specifically, we're seeing office investment interest across the board thanks to improving fundamentals and the fact that better yields can be realized here than in other gateway markets.”
JLL capital markets experts represented the seller, a partnership between Investcorp and Griffin Partners.
“The portfolio's strong medical tenancy combined with a strategic location along the West Loop in the affluent city of Bellaire made this portfolio attractive for investors looking to draft off of the favorable momentum in medical office demand in the Houston area,” said managing director Mindy Berman, head of JLL capital markets, healthcare. “Investors are on board with the durable qualities of medical office.”
Pin Oak is just minutes from the Texas Medical Center, the world's largest medical complex. The campus provides an alternative for healthcare providers and patients in an area where the average household income is $230,000. The 504,609-square-foot portfolio is 93% leased, 58% of which is to medical tenants. The portfolio also provides a diverse roster of tenants in professional and financial services.
“Pin Oak is perfectly suited to capture the need for medical office, offering desirable demographics and easy access at a relative discount to the nearby Texas Medical Center,” says Hubbard. “The investor interest in the portfolio was high and showed how well medical properties support pricing levels compared favorably with local commercial office.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
