By Keith Loria
Austin, Texas—An affiliate with the Innovation Institute has acquired Austin VA Outpatient Clinic, a 275,000-square-foot, freestanding outpatient clinic in Austin, Texas, from Cullinan Properties.
Ryan Butler, Brad Moulder and Anne Perrault of Stan Johnson Company represented the seller in the transaction, while James McGrade of HPA Realty Inc. represented the buyer.
“The appeal was a long-term lease with extraordinarily strong guaranty—17 years remain on lease backed by the United States of America’s Department of Veteran Affairs. There are no termination options,” Ryan Butler, Stan Johnson Company’s senior director, told Commercial Property Executive. “Per CoStar records, the Austin VA Clinic sale is the largest health care, single asset sold in the United States in 2016.”
Completed in 2013, the LEED Silver Equivalent facility is located at 7901 Metropolis Drive, adjacent to the 35-acre property of the Austin-Bergstrom International Airport.
The facility combines superior architecture, state-of the-art technology, top-tier location and unprecedented patient demand and will provide United States Veterans with a full spectrum of medical care for decades to come.
“The building design and construction leveraging the natural beauty of Texas Hill County also maximize the efficiency of the facility so as to minimize operational expenses and environmental impact,” Butler said. “Special attention to building material use, facility orientation, equipment selection and similar elements contribute to moderating current and future utility costs.”
Austin has an explosive population, employment growth and is ranked the premier U.S. real estate market, thus making it attractive to individuals in the workforce, including those veterans seeking opportunity.
According to Butler, investors are showing a growing appetite for medical real estate due to population trends and resulting demand for health care services.
“The Texas facility provides services to the country’s second largest (exceeding 1.68 million), and rapidly growing, population of veterans,” Butler said. “Apart from the incredible demand characterizing the Austin VA Clinic, government-leased facilities have a historic lease renewal rate of 91 percent.”
The Austin VA Clinic accommodates more than 300,000 VA patient visits annually and draws from 39 counties in a population of more than 3.5 million people.