LaSalle Investment Management has acquired a 28-story, 510,000 square-foot, Class A+ medical office building in the Texas Medical Center district in Houston for a record-setting $405 million, reportedly the highest amount ever paid for a medical office property in the U.S. The sale of Memorial Hermann Medical Plaza establishes Houston as a top health-care real estate market in the U.S. and also continues the sector’s strength among commercial real estate investments.
LaSalle, which recently purchased Aviva Investors and Encore+, said it acquired the tower on behalf of its U.S. core open-end real estate fund, LaSalle Property Fund (LPF). The seller, which opened the property in 2007, was a partnership comprising Mischer Healthcare, Memorial Hermann Health System, and other private investors. The property at 6400 Fannin St. had become the subject of a 15-year, $117.5 million loan held by TIAA in late December 2006, according to Yardi Matrix. The loan was set to expire at the end of 2021.
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