Northwest Houston property sold after transition from retail to medical office plaza

A professional plaza catering to medical businesses in northwest Houston has sold for an undisclosed sum to a

A professional plaza catering to medical businesses in northwest Houston has sold for an undisclosed sum to a local firm.

Houston-based investment firm SGRE Stone Center Ltd. sold Hearthstone Professional Plaza, which is located at 15003 FM 529, to Signal Hearthstone LLC, according to a news release.

State tax records show Signal Hearthstone LLC is registered to Houston-based commercial real estate firm Finial Group.

The 16,142-square-foot plaza is anchored by HCA Houston Healthcare, which has leased 5,900 square feet of Class A office space in the plaza. The plaza Is 92 percent occupied, with five of the six current tenants being medical providers.

SGRE acquired the 1.4-acre property in May 2016. The firm tasked Houston-based NewQuest Properties with transitioning the plaza from a traditional shopping center to one focused on medical offices.

Chris Dray, executive vice president of NewQuest Properties, and Rachael Keener, a vice president at the company, represented SGRE in the sale of the plaza. Terms of the sale were not disclosed. But as of Jan. 1, the land and building were valued at $2.6 million, according to the Harris County Appraisal District.

“It’s the Amazon-proof and recession-proof kind of real estate that people want to own,” Dray said in a statement. “The seller is a value-add player who wanted to get it stabilized and sold.”

Eugene Lang of Agate Properties represented Signal Hearthstone, which is starting out with no lease rollovers in the near term and one vacancy, totaling 1,231 square feet.

NewQuest is one of several firms that have recently launched practices specifically focused on medical propertiesAshley Strickland, a vice president with NewQuest, leads her firm’s new full-service health care and wellness real estate division. In April, the firm said it created the new division to meet the demand from the emerging “retailization” of the medical industry, which is bringing patient care and communities closer together.

And just last week, Lee & Associates in Houston launched its own medical business line with the hiring of associate Daniel Wyatt, who specializes in medical office brokerage.

Properties in Houston geared toward medical businesses have garnered a great deal of developer attention in recent years.

Last month, Dallas-based Stream Realty Partners delivered its first medical office building in Houston, a new 102,000-square-foot facility aimed at providing more convenient health care in Hedwig Village. Hedwig Place, as the building is known, is located at 8731 Katy Freeway and offers five floors of space specifically designed for medical care plus a ground-floor restaurant.

Stream has already acquired land for a second medical office building, to be called Spring Valley Place, near the intersection of Interstate 10 and Campbell Road. That project is expected to be completed by the end of 2020.

Also in August, Houston-based Jacob White Construction broke ground on a three-story medical office building at 4460 Bissonnet St. in Bellaire. Bissonnet Medical Plaza, as the project is known, will offer tenants over 52,000 square feet of medical office space.

For more information on Houston office spaceHouston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at: www.houstonrealtyadvisors.com  Thank you for your interest.

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