Medical Office Building in Memorial Trades Hands

Published by Houston Chronicle

A joint venture of two Texas companies has acquired a recently built medical office building in Hedwig Village in west Houston’s Memorial area.

Austin-based Virtus Real Estate Capital and Houston-based Saber Street acquired Hedwig Place, a 102,774-square-foot, five-story medical office building at 8731 Katy Freeway developed by Stream Realty Partners. Completed in 2019, the building is anchored by tenants Texas ENT Specialists, Memorial Plastic Surgery and Neurosurgical Group of Texas. Terms were not disclosed.

The transaction was financed by CIT Group’s health care finance group.

“This Class-A facility is an excellent addition to our growing portfolio of investments in premier medical office buildings,” Matt Withey, managing director of healthcare acquisition at Virtus Real Estate Capital said in an announcement.

Medical office vacancy in Houston fell to 12.2 percent in the second quarter, down from 12.9 percent at year end, according to commercial real estate firm Transwestern.

Saber Street is a commercial real estate company specializing in the sponsorship, development, ownership and operation of health care assets.

(Pictured Above: Hedwig Place is a five-story medical office building developed by Stream Realty Partners at 8731 Katy Freeway.)