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For Sale: A Health System Anchored, On-Campus Medical Office Building in a High Growth Houston Suburb

Property Website

Confidentiality Agreement

Offering Price Best Offer
Address 1327 Lake Pointe Parkway, Sugar Land, Texas
Total Size 120,596 RSF
Year Built 2008
Percentage Leased 82.7%
Remaining Lease Term 6.8 Years
In-Place NOI $1,813,641
Pro Forma NOI $1,893,055

The Offering

CBRE U.S. Healthcare Capital Markets is pleased to exclusively offer the opportunity to acquire the CHI St. Luke’s Health Sugar Land Medical Plaza (the “Property”). The Property is a five-story, 120,596 rentable square foot, on-campus medical office building that is over 82.7% leased, providing the buyer an opportunity to maximize value. The building is 29% leased by CHI St. Luke’s Health, 35% leased by The University of Texas – MD Anderson, and the remainder of the building is leased by strategic medical practices affiliated with the hospital.  CHI St. Luke’s Health will sign new 10-year leases at the time of sale, providing the buyer a long-term commitment to this building and campus.

CHI St. Luke’s Health is a wholly owned and operated subsidiary of Catholic Health Initiatives (CHI), one of the nation’s largest health systems, with an investment grade rating of Baa1 by Moody’s Investors Service. CHI and Dignity Health (Moody’s A3) have signed a definitive agreement to combine and create a new Catholic health system that, if completed, would encompass 139 hospitals and more than 700 sites of care across 28 states. The University of Texas, MD Anderson Cancer Center is one of the world’s largest and most respected centers devoted exclusively to cancer patient care, research, education and prevention. The University of Texas has an investment grade rating of Aaa by Moody’s Investor’s Services.

The Property is located on the CHI St. Luke’s Hospital – Sugar Land campus in Sugar Land, Texas and is attached to and prominently integrated into the hospital and campus plan. Due to a recent expansion of the city’s boundaries, Sugar Land has dramatically increased its population by 34% from 2017 to 2018 and continues to grow rapidly, according to the City of Sugar Land.

Investment Highlights

  • 82.7% Leased with 6.8 Years of Remaining Lease Term
  • Investment Grade Health Systems Occupancy
  • Strategic Location Attached to the Hospital
  • Appealing Local Demographics for Medical Office
  • Recent Construction with Minimal Capital Exposure
  • Rapidly Growing Houston Suburb
  • High Investor Demand for Medical Office
  • Delivered Free and Clear of Existing Debt

Contact Information

CBRE U.S. Healthcare Capital Markets

Shane Seitz
+1 303 583 2033
shane.seitz@cbre.com

Chris Bodnar
+1 303 628 1711
chris.bodnar@cbre.com

Lee Asher
+1 404 504 5965
lee.asher@cbre.com

Ryan Lindsley
+1 303 628 1745
ryan.lindsley@cbre.com

CBRE Houston Healthcare Brokerage

Nelson Udstuen
+1 713.577.1716
nelson.udstuen@cbre.com

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