Rotunda Ltd. purchased the 51,500-sf, class A medical building from Rotunda Venture Ltd., an investment group from Houston that focuses primarily on retail assets. "The Rotunda was their only non-retail asset and they thought it would be a good time to sell off a non-core asset," says Larry Marks, a senior vice president with Houston-based Betz Commercial Brokerage Inc.

Marks tells GlobeSt.com that the three-story building at 5819 Highway 6 South is the buyers' first commercial real estate investment. "They recently sold an oil and gas company and were looking to get into real estate," he explains. The buyer paid cash for the fully leased asset.

Hibernia Bank recently leased 6,000 sf for first-floor bank space that had been vacated by Southwest Bank of Texas when it built a freestanding branch across the street. According to Marks, 60% of the tenants are physicians, of which 50% of them have had their offices in the building for 12 years or longer. "The building offers a stable cash flow investment, but there's also some upside in the rents since many leases are 10% below market rents, Marks says. The current rate is $18.50 per sf.