Saber Street JV Obtains $41M for Houston MOB
First Citizens Bank provided the note.
A joint venture between Saber Street and Virtus Real Estate Capital has obtained a $41.1 million refinancing loan for Hedwig Place, a medical outpatient facility in Hedwig Village, Texas, according to Yardi Research Data. First Citizens Bank provided the note.
Previous financing for the 102,474-square-foot Houston property included a $41.1 million mortgage originated in 2021, the same source shows. Citibank provided the note, that was due to mature in 2026, when the joint venture purchased the asset from Stream Realty.
Located at 8731 Katy Freeway, the facility provides direct access to Interstate 10 and is 1 mile from Hedwig Village’s city center. Downtown Houston is less than 10 miles away, while George Bush Intercontinental Airport is 27 miles northeast.
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Completed in 2019, the five-story building has floorplates averaging 20,400 square feet, along with 7,000 square feet of retail space. The property also has 400 parking spaces and ambulatory surgical centers.
Texas ENT Specialists, Memorial Plastic Surgery and Neurosurgical Group of Texas anchor the property. Other medical providers in the area include Memorial Hermann Memorial City Hospital, Parker Nickolas Read Dental and AOK Spine and Pain.
Health-care financing on the rise
In the second quarter, loan originations for health-care facilities saw a 77 percent increase year-over-year, amid rising medical office building investment, according to a Mortgage Bankers Association report. The dollar volume of loans was also up 90 percent from the previous quarter.
One of the notes originated during in the first six months of the year was a $34 million refinancing loan for a medical office building in Sacramento, Calif. A joint venture between RevOZ Capital and Argosy Real Estate Partners own the 124,076-square-foot property.
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