Physician Group Sells Katy Medical Arts Center

Katy Med-Arts Partners Ltd., a 20-physician partnership, sold the 61,082-square-foot Katy Medical Arts Center in the far west Houston suburb of Katy, TX. The buyer is a private, equity-backed healthcare real estate investor. The sales price was not disclosed. Harris Central Appraisal District valued the property at $17.2 million. Cushman & Wakefield’s Gino Lollio and Scott Niedergang brokered the transaction.

The 10-year-old property at 1331 W. Grand Pkwy. N. is 100% occupied, with Katy Internal Medicine and Katy Cardiology Associates the largest tenants in the building. National tenants include LabCorp, U.S. Oncology and Quest Diagnostics. Other tenants are a mix of healthcare providers, including primary care, ophthalmology, endovascular surgery, mammography and general surgery.

Prior to bringing the building to market, Cushman & Wakefield helped the seller negotiate tenant lease terms to maximize the building’s value. As a result, the tenants are on longer-term, triple-net leases, with fixed rent escalations.

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