LIVINGSTON, TX-Grubb & Ellis Healthcare REIT II Inc. has acquired Livingston Medical Arts Pavilion, a 30,000-square-foot medical office building located on Memorial Medical Center’s 41-acre campus. The Santa Ana, CA-based company purchased the two-story property from McShane Development in an all-cash transaction for $6.4 million.
Memorial Medical Center – Livingston is a 66-bed facility specializing in critical access care and women’s health. Part of Memorial Health System of East Texas, the medical center recently constructed a new 160,000-square-foot hospital wing in response to growing demand for healthcare services in the community.
“Livingston Medical Arts Pavilion is a Class A building that is fully leased on the campus of a thriving medical center,” says Danny Prosky, president and chief operating officer of Grubb & Ellis Healthcare REIT II. “Additionally, this acquisition is immediately accretive and supportive of our stockholder distribution, making it an ideal and very attractive addition to our portfolio.”
The REIT was one of three companies to make an offer for the multi-tenant building, which is located at 403 Ogletree Dr. about an hour north of Houston. “We advised [McShane] that the conditions in the market were favorable to sell the asset,” says Toby Scrivner, a director with Stan Johnson Co. who handled the sale along with Jeff Matulis. “They asked us to solicit offers discretely from qualified investors. Of the buyers who presented offers, Grubb & Ellis rose to the top.”
Built in 2007 within close proximity of Highway 59, Livingston Medical Arts Pavilion is 100% occupied by multiple tenants. However, it is leased primarily to Memorial Health System of East Texas, which leases approximately 94% of the building.
The property houses multiple clinical specialties including: neurology, sleep medicine, podiatric surgery, sports medicine, pediatrics, obstetrics, gynecology, family medicine and rheumatology. Asking rents for the building are $19.25 per square foot, triple net.
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