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Total Rentable SF
83,466 SF
Land Size (Acres)
8.91 AC
Year Built | Reno
2008 | 2013
Property Use
Hospital & Medical Outpatient
Value Add Opp.
28% Occupancy
INVESTMENT HIGHLIGHTS
STATE-OF-THE-ART FACILITY The 83,466 SF Property which was built in 2008 and remodeled in 2013, consists of a recently vacated surgical hospital, a dental care facility, an orthopedics and sports medicine facility, and an allergy clinic. The former Surgical Hospital contains several treatment rooms, operating rooms, labs (including a catheterization lab), Pre-Op and Post-Op rooms, as well as 12 in-patient beds.
AFFLUENT HOUSTON MSA Houston, TX is the 5th largest MSA in the entire county with a population of over 2.2 million. Within a five-mile radius of the Property, there are over 235,000 residents with an average household income of $138,000. The property benefits from this incredibly dense, affluent community.
VALUE-ADD COMPONENT The Property is currently 28% occupied. This leaves approximately 60,256 SF of vacant space, including a former surgical hospital, that can be potentially leased at a market NNN rental rate of $35/SF creating significant value to the investor.
BELOW REPLACEMENT COST The Property can be purchased well below its replacement cost which creates immense opportunity for investors. According to RevistaMed, the average construction cost for an outpatient medical office building in 2023 was $498/SF. The average cost to build a inpatient hospital in 2023 was $912/SF. Both of these costs per square foot are expected to continue to climb for the foreseeable future.
STRATEGICALLY LOCATED The Subject Property is strategically located between three (3) major suburbs within the Houston MSA. Being the only hospital centrally located between Tomball, Klein, and Spring, the property is able to reach a large pool of patients. Additionally, the Property is easily accessible being located between two highly traveled thoroughfares - Kuykendahl Rd and FM 2920 Rd.
INCOME TAX FREE STATE The State of Texas does not have individual state income tax. This feature lends itself to Texas being one of the most attractive states in the minds of net lease investors.
SYNERGISTIC MEDICAL TENANT MIX The Property consists of an array of medical tenants offering orthopedics, sports medicine, dental, and allergy services. Having a myriad of tenant specialties provides synergies with regards to referrals, and mitigates risk over lease term remaining, tenant viability, and re-tenanting.
SPEED-TO-MARKET TURN-KEY FACILITY The Property contains a sizeable former surgical hospital spanning roughly 42,000 SF. This provides potential investors with a fully built-out surgical facility that is ready for immediate use.
Exclusively Listed by the Northmarq National Healthcare Group
