The 93 percent leased, multi-tenant medical building near Austin, Texas, boasts ideal location, strong tenancy, excellent sponsor relationship, immediate cash flow and expansion potential
Some real estate acquisitions just have it all – every benefit a company could want. That’s the case with MedProperties’ and Equity’s acquisition of the 32,987 square foot Lakeside Professional Building in Bastrop, a suburb of Austin, Texas.
MedProperties Holdings LLC, a national healthcare real estate private equity firm headquartered in Dallas, and Equity LLC, an Ohio-based developer, owner and operator of healthcare facilities and other real estate assets with 10 regional offices, including Austin and San Antonio, formed a joint venture and closed on the value-added acquisition and possible expansion of the Lakeside Professional Building in Bastrop.
MedProperties Managing Principal Darryl Freling, notes, “This value-added acquisition will provide the MedProperties Investment Partners LP fund with immediate cash flow while we evaluate potentially expanding the facility by 12,000 square feet.
“St. David’s Healthcare, which owns ER services adjacent to the MOB, is planning to expand its services in this facility which would create the need for additional medical office space for the surgeons working there. The expansion, when it occurs, will result in incremental accretive cash flow and capital appreciation upon the sale of the building.”
Mr. Freling added that other positives with the facility are the high occupancy rate of 93 percent and the strong tenancy, including the largest family practice groups in the area.
The Lakeside Professional Building, which is located at 3101 Highway 71 E. in Bastrop, about 34 miles southeast of Austin, houses a wide variety of healthcare services and specialties. The property is leased to a diverse range of tenants, including a St. David’s-affiliated clinic Texas Cardiac Arrhythmia, Family Health Center of Bastrop, which leases 43 percent of the building and entered into a new 15-year lease immediately before the closing. Other tenants housed in the building include Austin Diagnostic Clinic, Austin Gastroenterology, Pain Specialist of America, Tru-Skin and CPL Labs, as well as other specialties and services including gynecology and obstetrics; orthopedics; ear, nose and throat specialists; and imaging.
MedProperties Managing Principal Roman Kupchynsky said this is the fourth joint venture project between MedProperties and Equity LLC and its affiliates, and that the MedProperties team is pleased to continue strengthening this relationship.
“MedProperties has a long history of working with Equity on their sponsored acquisitions and developments so we know they are a highly qualified national developer, operator and manager of healthcare real estate,” Mr. Kupchynsky says. “Equity has an excellent national reputation and their team possesses the market knowledge and real estate expertise required to execute on this value-add strategy.”
Lee Jackson, Equity, LLC SVP for Business Development, who is based in Austin, said the professional building is in an ideal location.
Mr. Jackson notes, “Lakeside Professional Building is situated on Highway 71, a major artery that connects Houston with Austin, one of the fastest-growing cities in the country. The property is also next to St. David’s freestanding emergency center, as well as a cancer center leased by Texas Oncology-Bastrop. This is, in essence, a medical village with a synergistic group of healthcare tenants that generate significant referrals.”
Debt for the project is being provided by American Bank NA with additional debt of made available for capital improvements and future tenant improvements.
MedProperties is a Dallas-based healthcare real estate private equity firm that invests on a direct and an indirect basis (through joint venture relationships) in the development of new, value-add, and stabilized healthcare real estate, including multitenant medical office buildings and single-tenant, specialty healthcare facilities. MedProperties invests through its discretionary funds and through stand-alone investment vehicles. MedProperties is dedicated solely to investments in healthcare real estate. For further information on MedProperties, please visit www.medpropertieslp.com.
About Equity LLC
Equity LLC is a national commercial real estate company that provides real estate development, leasing, construction, and property management services for healthcare, retail, office, mixed-use, and seniors housing projects in the United States. It also offers full-service 3rd party brokerage, property management, and consulting services for most real estate product types, including office, medical office, senior living, retail, industrial, self-storage, and residential. The private company was founded in 1989 by Steve Wathen and is based in Columbus, Ohio. It also has locations in Cincinnati and Dayton, Ohio; Austin and San Antonio, Texas; Charleston, S.C.; and Tampa, Naples, Orlando and Ft. Lauderdale, Fla. For additional information, please visit www.equity.net.
MedProperties Holdings LLC
2100 McKinney Ave., Suite 1450, Dallas, TX 75201
(p) 214.661.1000 (f) 214.292.9458
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