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Transactions: Harrison Street nabs Houston-area asset for $115M

Harrison Street acquires the 208,000 s.f. MD Anderson outpatient facility in Conroe, Texas 

By John B. Mugford

Commercial real estate data services confirm that Harrison Street acquired the 208,000 square foot MD Anderson Cancer Center – The Woodlands in Conroe, Texas, for $115 million. (Photo courtesy of MD Anderson)

CONROE, Texas — While the outbreak of the COVID-19 pandemic could possibly result in a slowdown in the medical office building (MOB) transactions market, a large deal involving a trophy asset outside of Houston closed just as the economy and the stock market started to reel.

In a transaction that closed March 13, Chicago-based Harrison Street Real Estate Capital, a private real estate investment management firm, acquired the 208,000 square foot MD Anderson Cancer Center – The Woodlands in Conroe, which is near The Woodlands in the northern Houston suburbs.

According to MOB sales data from two separate research firms, Real Capital Analytics (RCA) and Revista, the price for the single-tenant asset was $115 million, or $553 per square foot (PSF). Harrison Street acquired the facility from the developer, New York-based the Howard Hughes Corp., which completed the project in 2019.

Houston-based MD Anderson, the sole tenant and part of the University of Texas, opened the facility to patients in October. The provider has seven locations in Greater Houston, including its flagship campus in Houston’s Texas Medical Center.

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