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News Release: Cushman & Wakefield Announces Sale of Katy Medical Arts Building

Gino Lollio and Scott Niedergang of Cushman & Wakefield’s Healthcare Capital Markets team have facilitated the sale of the Katy Medical Arts Center near Houston. The 61,082-square-foot medical office building is fully occupied by a range of healthcare tenants that provide primary care, ophthalmology, cardiology, podiatry, lab, endovascular surgery, mammography, hand and general surgery, nephrology, oncology, imaging, dermatology, and gastroenterology services. The mix of tenants allows for a strong referral network within the facility.

Katy Internal Medicine and Katy Cardiology Associates are the largest tenants in the building, occupying 18 percent and 10 percent of the gross leasable area, respectively. The abundance of private-practice tenants (not employed by a health system) allows for future credit enhancement, should they be acquired. Occupants with a national presence include LabCorp, US Oncology, and Quest Diagnostics.

The seller of the asset, Katy Med-Arts Partners Ltd., was a partnership of more than 20 physicians associated with practices occupying the building. Prior to going to market, Cushman & Wakefield consulted these physicians on approaching their tenants to negotiate lease terms that would maximize the value of the building upon sale. By securing longer terms, fixed rent escalations, and converting gross leases to triple-net, significant value was added to the property. The buyer is a private equity-backed healthcare real estate investor.

Inclusive of the Katy Medical Arts transaction, Gino Lollio and Scott Niedergang have facilitated the sale of eight medical office buildings in the Houston market over the last 36 months. This equates to an aggregate sales volume of $116 million within the Houston MSA. Previous transactions include a portfolio sale of Memorial Hermann and UT Physicians assets in Sugar Land and Richmond for $58 million and the $40.4 million sale of a Memorial Hermann Surgery Center and Rehab Hospital in Katy.

About Cushman & Wakefield’s Healthcare Advisory Practice

Cushman & Wakefield’s Healthcare Advisory Practice provides healthcare organizations with strategic and transformational real estate services that directly affect positive business outcomes. More than 300 real estate specialists  help clients make decisions that enhance patient care and accessibility, generate efficiencies across their platforms, and maximize the value of their real estate. In short, we assist in aligning real estate with healthcare missions, whether that focus involves executing on a single specialty, planning for new care delivery models, or combining multiple practices. Our expertise in the healthcare industry, combined with deep local market knowledge, strong relationships with health systems, physician practices, and other healthcare providers, allows for rapid response to our healthcare clients’ needs.

About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

For Further Information Contact:

Ashley Kosatka

Vice President



Christine Perez

Senior Communications Specialist

+972 663 9874


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