IRA Capital Buys San Antonio MOB Portfolio

The fully leased properties total more than 50,000 square feet.

IRA Capital has acquired a 55,457-square-foot medical office portfolio in San Antonio. Transwestern Real Estate Services arranged the deal on behalf of the seller, Gastroenterology Consultants of San Antonio. The portfolio encompasses three medical office buildings and an ambulatory surgery center.

The Transwestern Healthcare Advisory Services team included Executive Managing Director Alan Grilliette and Executive Vice President Justin Brasell. 

At the time of the transaction, the office component was fully leased by three long-term tenants. The assets are:

  • The 24,230-square-foot South Texas Medical Center, built in 2016 and located at 5223 Hamilton Wolfe Road;
  • The 18,438-square-foot Northeast Medical Center, built in 2013 and located at at 12850 Toepperwein Road;
  • The 12,789-square-foot Stone Oak Medical Center, built in 2004 and located at 855 Proton Road.

All three properties are located in suburban areas, close to several hospitals and medical centers. The facilities, which are suited for high patient volume, include offices as well as operating and exam rooms.

Not deterred by pandemic-generated instability, IRA Capital expanded its MOB footprint last year with the acquisition of a 41,500-square-foot facility in Manhasset, N.Y., and the $38 million purchase of a Santa Ana, Calif., building.

Investor interest to persist

Last year, Marcus & Millichap anticipated a swift recovery for the health-care industry post-pandemic. The latest data on the sector supports the positive outlook.

According to the most recent Marcus & Millichap report, 30 percent of all U.S. office transactions year-over-year in March 2021 consisted of medical office sales. The number of deals closed during the six months ending in March was also the highest the sector has seen in 20 years, as the range of investors seems to have diversified.

And medical office continues to qualify as a reliable investment, according to Ellen Comeaux, senior vice president & commercial sales leader at TIAA Bank. While the pandemic has impacted medical office initially, recovery for the asset class has gained ground at a quick pace. Given the aging U.S. population and decentralization of care, demand for medical space is expected to remain on the upswing.

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