A partnership between Artemis Real Estate Partners, Ackerman & Co. and MLL Capital has purchased a four-building medical office portfolio totaling 423,411 square feet in San Antonio, Texas. The on-campus properties are located in two clusters. Two buildings are in the San Antonio CBD, adjacent to the $175-million San Pedro Creek redevelopment. The other two buildings are in the South Texas Medical Center – the largest medical research, education and healthcare provider in South Texas.
Santa Rosa Professional Pavilion (128,578 SF) and Rosa Verde Tower (123,324 SF), located in the San Antonio CBD, sit on the CHRISTUS Children’s Hospital of San Antonio campus, which recently underwent a $135-million renovation and expansion. Northwest Towers I and II (171,509 SF), located in the 900-acre South Texas Medical Center, are on the campus of CHRISTUS Santa Rosa Hospital – Medical Center.
The new ownership will invest $27 million into renovating and leasing the portfolio. The result will be a high-quality medical office environment that will support world-class medical professionals, serve the area’s growing patient population and meet the strong demand for outpatient services. Property upgrades will include new building lobbies, the addition of common area improvements, parking upgrades, and state-of-the-art elevators and mechanical systems.
Lee Asher, Chris Bodnar and Scott Herbold of CBRE represented the undisclosed seller in the transaction. Ed Cross and Brent Smith of Cushman & Wakefield San Antonio Commercial Advisors advised the buyer. Chad Gunter of Transwestern will lead leasing efforts on behalf of the new owners.
“It was an honor to work with our local expert partners and all the professionals at CHRISTUS to learn about the needs of the San Antonio community,” said Kris Miller, President of Ackerman & Co. “Our intent is to extend the success of the newly renovated Children’s Hospital into these buildings to create a first-class clinical environment for the delivery of medical care.”
“As part of our mission to deliver top-quality medical space, our investment in these properties will be patient-centric, physician-friendly and community-minded,” said Kyle O’Connor, President of MLL Capital.
“Medical office continues to be an asset class we believe has strong macro tailwinds and we are excited about the opportunity to reposition these assets into a best-in-class medical office portfolio,” added Rich Banjo, managing principal at Artemis.
About Ackerman & Co.
Headquartered in Atlanta, Ackerman & Co. is a privately held, full-service commercial real estate firm focused on providing quality investment, brokerage, management and development services in the Southeast. The company, founded in 1967, retains an expert team of more than 100 real estate professionals. To date, Ackerman & Co. has developed and acquired nearly 35 million square feet of office, medical, industrial, retail and mixed-use space, has more than 7 million square feet under management, and maintains an investment portfolio valued at $1 billion.
For more information on Ackerman & Co., visit www.ackermanco.com
About MLL Capital
MLL Capital, a Boston-based commercial real estate investor, pursues opportunistic and value add real estate investments in the medical office, laboratory and life sciences sector that create value through strategic capital investment, detailed repositioning and redevelopment plans with a strong focus on targeted leasing. Kyle O’Connor, its President and Founder, is an industry veteran with 25 years of commercial real estate investment and asset management experience across a broad range of property types, markets and risk strategies for investments totaling nearly $4 billion.
For more information on MLL Capital, please visit www.mllcapital.com.
About Artemis Real Estate Partners
Artemis Real Estate Partners invests with best-in-class local operating partners, both established and emerging, in multifamily, office, industrial, retail, hotel, medical office and senior housing across opportunistic, value added and enhanced core strategies. Artemis has raised more than $2.5 billion of investor capital across two commingled value-add/opportunistic fund vehicles, one commingled core plus healthcare real estate fund, and a series of emerging manager separate accounts with The New York State Common Retirement Fund, New York City Retirement Systems and the Illinois Municipal Retirement Fund. The firm is headquartered in the Washington DC metropolitan area with offices in New York, Los Angeles, and Atlanta. Artemis’ sole focus is U.S. commercial real estate.
For more information on Artemis Real Estate Partners, please visit www.artemisrep.com.