Assets are located throughout the Houston MSA
New York, NY (October 20, 2023) — Newmark announces it has facilitated the sale of the 100% leased Memorial Hermann Convenient Care Center Portfolio of Class A, build-to-suit MOBs. Newmark Senior Managing Director Jay Miele, Executive Managing Director Ben Appel, and Senior Managing Directors John Nero and Michael Greeley of Newmark’s Healthcare Capital Markets Group represented the seller, Invesco Real Estate, a global real estate investment manager, and procured the buyer, Big Sky Medical Real Estate Funds and its Bahrain-based partner Gulf Finance House.
The three-property portfolio is located throughout the Houston market in Spring, Katy and League City, Texas and is leased on a single-tenant basis to Memorial Hermann (Moody’s: A1), which also provides lease guaranties. Notable investment characteristics of the portfolio include an 8.5 year weighted average lease term, 2.0% annual increase and long-term ground leases. Each property provides a full range of services including a 24-hour emergency room, primary care, pediatrics, imaging, breast care, sports medicine and physical therapy. In addition, the League City property, which is the largest facility in the portfolio at 48,000 square feet, offers specialty care in orthopedics, cardiology, and gastroenterology. Deal team members were involved in the developer RFP when Invesco Real Estate was originally selected to develop the properties, which were constructed in 2015-2017. Each built-to-suit asset’s location was specifically chosen by Memorial Hermann to maximize patient access as the system expands its footprint in the MSA. Moreover, the leasehold properties include additional land providing expansion potential and ensuring the locations can meet the growth needs Memorial Hermann may have in the future.
“This portfolio keys in on the investment criteria for many sector investors and lenders in the current environment. The long WALT, investment grade tenancy and strategic nature of the assets combine to provide a durable and secure cash flow,” said Miele and added “We congratulate Invesco Real Estate and Big Sky on a successful closing during a turbulent time in the commercial real estate market.” Appel noted, “The transaction highlights strong sector fundamentals and healthcare exposure; characteristics that investors globally, like GFH, seek today.”
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate investment management business with $91.1 billion in real estate assets under management, 586 employees and 21 regional offices across the U.S., Europe and Asia (as of March 31, 2023). Invesco Real Estate was established in 1983 and today invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; http://www.invesco.com/realestate.
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