Catalyst HRE, Bain Capital Buy Dallas MOB for $21M
- Apr 16, 2019
A joint venture of Catalyst Healthcare Real Estate and Bain Capital Real Estate has acquired Greenville Medical Tower, a six-story medical building in Dallas. The partners bought the 81,000-square-foot asset from Jetall Cos.
The property is located at 7150 Greenville Ave., across the street from the 857-bed Texas Health Presbyterian Hospital Dallas. Jetall Cos. purchased the asset, completed in 1984, from Texas Retina Associates for $20 million in 2008, and the Class B property underwent cosmetic renovation in 2016.
CIT Group Inc.’s Healthcare Finance unit arranged $14.8 million in financing for the acquisition. “The robust demand for healthcare services in the Greater Dallas-Fort Worth market means the Greenville Medical Tower will continue to play an important role in serving the community,” Alex Bell, senior vice president at Catalyst, said in a prepared statement.
Retirement wave drives MOB trades
Sales velocity for medical office properties across the U.S. increased by 5 percent over the past year, according to a recent Marcus & Millichap market report. Demand is expected to remain strong in 2019, as roughly 10,000 baby boomers retire every day and companies crave more modern spaces.
Catalyst closed on the acquisition of a 21-asset healthcare portfolio with a total cost of around $150 million last July. The portfolio encompasses 530,182 square feet across eight states, including Texas, and was 95 percent leased at the time of the transaction. Of the 21 properties, 17 were sold by Physicians Realty Trust, a publicly traded REIT.
Following the deal, Catalyst hired Alex Stacy as chief acquisition officer last October to support further expansion, with a focus on acquiring and developing healthcare properties throughout the Southeast and Midwest.