The Offering
| O’Quinn Medical Tower | Baylor Clinic Building | Surface Lot | Portfolio | |
| Address | 6624 Fannin Street, Houston, TX | 6620 Main Street, Houston, TX | 6600 Main Street, Houston, TX | |
| Building Size | 445,725 RSF | 227,670 RSF | N/A | 673,395 SF |
| Floors | 27 + Mechanical Penthouse | 15 | N/A | |
| Parking | Parking Floors: 3-7 Size: 408,384 SF Spaces: 1,365 Spaces |
Parking Floors: 2-10 Size: 448,257 SF Spaces: 1,500 Spaces |
Surface Lot: 208 Spaces | 3,073 Spaces |
| Year Built | 1991 | 2003 | N/A | |
| Percentage Leased | 86.30% | 97.00% | N/A | 89.90% |
| In-Place NOI | $1,444,302 | $4,891,941 | N/A | $6,336,243 |
| Pro Forma NOI | $1,600,962 | $4,958,436 | N/A | $6,559,398 |
CBRE is pleased to offer the exclusive opportunity to acquire the Texas Medical Center Portfolio (the “Portfolio”) that consists of the iconic O’Quinn Medical Tower, the Baylor Clinic Building and an adjacent parking lot currently serving Baylor St. Luke’s Medical Center, an 850-bed acute care hospital. The 673,395-square foot Portfolio is currently 89.9% leased and is located on approximately 6 acres in the heart of the Texas Medical Center (TMC).
The TMC is the largest medical center in the world with one of the highest densities of clinical facilities for patient care, basic science, and translational research. Located in Houston, the center contains 54 medicine-related institutions, including 21 hospitals and 8 specialty institutions, 8 academic and research institutions, 4 medical schools, 6 nursing schools, and schools of dentistry, public health, pharmacy, and other health-related practices.
Since its inception, the TMC has been controlled and managed by the Texas Medical Center Corporation, a membership of healthcare providers, academic institutions, civic and private institutions, non-profit organizations and private businesses, each with a financial stake in the success of TMC. However, the Portfolio is located along the only corridor in the TMC which is not part of the original land covenant set aside for the Texas Medical Center Corporation and subject to restricted ownership and certain uses. As such, this corridor was informally named the ‘profit zone’ because it historically has been built by developers for tenants engaged in for-profit business.
In January 2016, the leaders of Baylor-St. Luke’s Medical Center announced that all medical services will be moved out of the historic hospital and into a new hospital campus being built across from the Michel E. Debakey VA Medical Center. With the planned move to the new campus in 2019, many of the tenants (but not all) in the O’Quinn Medical Tower and the Baylor Clinic will be moving to the new campus, ushering in a new era of ownership and possible uses for the Portfolio including healthcare, life sciences, education, hospitality and retail.
The Portfolio assets are being offered as either one entire portfolio or as separate assets. The Ownership will consider any offers for the entire Portfolio or separate individual assets.
Offers Requested by Tuesday, May 10th, 2016 – 5:00 PM CST
Investment Highlights
- A New Era of Use
- The ‘Profit Zone’ in TMC
- Ownership Opportunity Significantly Below Replacement Cost
- Dramatic Design by César Pelli
- Nearby Amenities and Convenient Access
- 10%+ of All Parking in TMC
- Delivered Free and Clear of Any Debt
Contact Information
CBRE U.S. Healthcare Capital Markets Group
Chris Bodnar
Executive Vice President
+1 303 628 1711
chris.bodnar@cbre.com
Lee Asher
Executive Vice President
+1 404 504 5965
lee.asher@cbre.com
CBRE Houston Healthcare Services
Nelson Udstuen
+1 713 577 1716
nelson.udstuen@cbre.com
CBRE Hotels
Lew Miller
+1 404 923 1269
lewis.c.miller@cbre.com
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