Purchase shows strength of medical office sector in region
Cleveland-based Woodside Health has added a fifth Houston-area medical office building to its portfolio with the purchase of the Rotunda Building in Missouri City.
The three-story building at 5819 Texas 6 near University Boulevard is next to the Riverstone masterplanned community. The 52,000-square-foot building is hometo 15 tenants, including Capital One, Texas Children’s Pediatric and Associates and Fort Bend Pediatric Dentistry. Five suites are vacant, according to Woodside.
“We’re fans of medical buildings in the Houston area,” Ted Barr, Woodside Health principal, said in an announcement.
The medical office sector has been a bright spot in Houston commercial real estate as demand for health care services continues to grow. Morethan 2 million square feet of medical office space is under construction in the Houston area, according to Coy Davidson of Colliers International. Of 11 million square feet of sublease officespace on the market, only about 1 percent is medical related.
Beth Young of Colliers International represented Rotunda Medical Properties, an entity of Woodside Health/Crescendo Commercial Realty, in the purchase. Barkley Peschel and Kolbe Curtice of Colliers International represented the seller. Built in 1985, the building is on a stretch of Texas 6 lined with onestory shopping centers.
“The building wasa unique investment opportunity due to its strategic location between First Colony, Riverstone and Sienna Plantation,” Peschel said in an announcement. “It’s the only multistory office building in the area. There isn’t another building like Rotunda until you reach Highway 59 in Sugar Land.”
Woodside Health affiliates own sand manages 21 medical office properties in six states. It purchased the Alore Center on Interstate 45 North near The Woodlands and the Rock me ad Professional Center in Kingwood last year.