PRESS RELEASE
MINNEAPOLIS (January 16, 2024)–Davis Healthcare Real Estate has completed the acquisition of the two-story, UT (University of Texas) Health & Wellness Center in San Antonio, TX which allows the real estate investment firm to expand its holdings in a dynamic, growth-oriented market. The building was acquired by Davis Medical Investors, LLC (DMI, LLC), in an off-market transaction for $24,310,000 or $332/SF.
“We’ve been looking to expand into Texas, and in the San Antonio market specifically, for a few years now,” said Stewart Davis, Executive Vice President of Investments, Davis Healthcare Real Estate. “The building, located across the street from the fast-growing medical corridor in Northwest San Antonio, represents a great addition to our fund because of the credit worthiness and market presence of the tenant, the length of the lease term and the ability to immediately achieve scale in this market.”
The 73,390-square-foot UT Health & Wellness Center is located at 5788 Eckhert Road. The building, formally leased to the VA, was originally developed in 1998 and went through a comprehensive renovation program by the previous owner in 2022. It is fully leased to the University of Texas Health System who view this as a strategic location for the future.
The UT Health & Wellness Center is located in the heart of the 900-acre South Texas Medical Corridor area that continues to attract widespread attention and spawn significant new development in the area. The South Texas Medical Center is home to 9 major medical institutions—including the University of Texas—and hundreds of offices that emplSy more than 30,000 healthcare and related service professionals. Among some of the specialty areas it is known for include cardiovascular, rehabilitation, neurosciences, neonatal and emergency services, among others.
Because of acquisitions like UT Health & Wellness Center and changing market conditions, Davis said the firm is looking optimistically at 2024.
“We’re excited for 2024. It could be a good year to get more aggressive,” Davis said. “While the bid-ask gap hasn’t changed much yet, the likelihood of interest rate declines later this year and dry powder on the sidelines could change that and make it easier for deals to get done.”
About Davis Healthcare Real Estate
Davis, founded in 1986, is a national healthcare real estate firm that offers unparalleled expertise in healthcare real estate development, property management, brokerage, investment and consulting services to health systems, hospitals, individual medical groups, specialty practices and other healthcare organizations. Over the past ten years, the company has developed more than 35 Class A medical buildings totaling $450-plus million in development costs and completed 57 investment transactions totaling more than $725 million. It has also negotiated more than 380 healthcare property leases with an aggregate value in excess of $1 billion. The firm currently owns and/or manages more than 60 Medical Office Buildings (MOBs) in 12 states across the US including concentrations in Minn., Iowa, Ill., Mich., Ohio, Tenn., Conn., Maine, Ariz., ND, Texas and La.
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For more information, please contact:
Michael Millar, Open Slate Communications
847-863-1037, mjmillar@openslatecommunications.com
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