JV Nabs 423 KSF San Antonio MOB Portfolio

Artemis Real Estate Partners, Ackerman & Co. and MLL Capital plan to invest $27 million to renovate and lease four buildings, which total 423,411 square feet.

Rosa Verde Tower
Rosa Verde Tower

A partnership of Artemis Real Estate Partners, Ackerman & Co. and MLL Capital has acquired a medical office portfolio totaling 423,411 square feet in San Antonio. Lillibridge Health Trust acquired the portfolio in 2001 from Christus Santa Rosa Health Care, according to San Antonio Business Journal. The four buildings are located on the campus of two Christus Health hospitals. The joint venture plans to invest $27 million into renovating and leasing the portfolio. Transwestern will lead leasing efforts.

Northwest Tower I
Northwest Tower I

Located in the San Antonio Central Business District, just off Interstates 10 and 35, Santa Rosa Professional Pavilion and Rosa Verde Tower sit on the Christus Children’s Hospital of San Antonio campus, which recently underwent a $135 million renovation and expansion. The two buildings—each around 125,000 square feet—are adjacent to the $175 million San Pedro Creek redevelopment, which broke ground last fall. Rosa Verde Tower is a Class B asset built in 1977, while Santa Rosa Pavillion is a Class B property built in 1986. The buildings are located in an area with a total population of 117,848 and an average household income of $53,094, according to Commercial Café.

Northwest Tower II
Northwest Tower II

The other two buildings total 171,509 square feet and are situated on the campus of Christus Santa Rosa Hospital – Medical Center. Northwest Towers I and II are located 10 miles northwest in the 900-acre South Texas Medical Center, where Velocis also recently purchased a 224,262-square-foot medical complex. Both buildings are Class B properties, but Northwest Tower I is a seven-story asset built in 1986, while Northwest Tower II is a four-story asset built in 1992. The assets are situated in an area with a total population of 192,057 and an average household income of $46,345.

Lee Asher, Chris Bodnar and Scott Herbold of CBRE represented the seller. Ed Cross and Brent Smith of Cushman & Wakefield San Antonio Commercial Advisors advised the buyer.

Upcoming renovation

The renovation includes upgrades to the building lobbies, common area, parking, elevators and mechanical systems. “Our intent is to extend the success of the newly renovated Children’s Hospital into these buildings to create a first-class clinical environment for the delivery of medical care,” said Kris Miller, president of Ackerman & Co., in prepared remarks.

Image courtesy of Commercial Café