CHICAGO (January 2, 2026)—Stage Equity Partners closed out 2025 with the acquisition of a two-building medical office portfolio in El Paso, Texas, that represented the firm’s ninth acquisition in the State of Texas. The transaction was announced by Brian Howard, President and Founder of Stage Equity Partners. The seller was an institutional fund manager.
The buildings, located at 1390 and 1393 George Dieter Drive, total 40,750 square feet and are located along a top retail and medical corridor in El Paso’s fastest growing submarket. The desired single-story buildings provide direct tenant access and parking, along with an attractive mix of complimentary practices and specialties, including neurology, gastroenterology, general surgery, pediatrics, behavioral health, laboratory testing and oral surgery.
The properties are 100% leased with more than one third of the total space leased to health system credit tenants including University of El Paso Medical Center and Tenet Health. The weighted average lease term (WALT) is approximately 7.0 years, with rental rate escalations of 3.0% annually.
“The dynamics of this transaction, and the medical office market in El Paso, make this a very attractive opportunity for Stage Equity and its investors,” Howard said. “El Paso is the sixth largest city in Texas with a metropolitan population of over 1,000,000, and its location draws patients from Texas, Arizona and New Mexico.”
Howard added that El Paso’s medical office market is constricted due to the lack of newly constructed medical space delivered in the area needed to accommodate the area’s population growth. This further creates high demand for both general practitioners and specialists.
The El Paso acquisition helps create increased enthusiasm for 2026.
“Heading into 2026, we are cautiously optimistic about the favorable market conditions for additional medical office acquisitions,” Howard said. “Interest rates are expected to continue to decrease, and property owners have been more reasonable about pricing expectations. We are excited for new acquisition opportunities, both locally and nationwide, as pricing dynamics continue to improve.”
Since inception, Stage Equity has acquired fifty buildings throughout the Country, including nine medical office buildings and surgical centers throughout Texas totaling more than 250,000 square feet. In addition to the El Paso acquisition, the other Texas assets have been located in Dallas, Houston, San Antonio, Midland and Cleburne.
Jay Miele of Newmark represented the seller in the transaction. Wintrust Bank provided the acquisition financing.
About Stage Equity Partners
Stage Equity Partners, LLC (“Stage”) is a private real estate investment firm focused on acquiring, developing and managing high quality medical office buildings and healthcare facilities across the country. Since inception, Stage has acquired facilities, on its own account and for its investor partners, totaling over 50 buildings in nine states. Stage is focused on select medical acquisitions in strong, established demographic areas near dominant hospital systems or other significant demand drivers. Stage targets acquisitions in the $5MM to $25MM range where there is less competition from REITs and institutional investors, which creates yield premiums and additional opportunities. By seeking a combination of strategic location relevance and synergistic tenant mix, Stage seeks to generate consistent and significant risk adjusted financial returns for its investors and itself.
The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE
