224K-SF Medical Office Complex Sells

Dallas-based Velocis, a private-equity firm, acquired Legacy Oaks, a 224,262-square-foot, Class A medical office building adjacent to the 900-acre South Texas Medical Center in San Antonio. The seven-building complex at 5360-5430 Fredericksburg Rd. was sold by MJR Investments.

The asset, which delivered in the early 1980s, was 75% leased at the time of sale to healthcare providers including Baptist Health System, BB&T, the Center for Health Care Services and MEDNAX. During its tenure, MJR made capital investments to the buildings. Velocis plans to implement a new management and leasing strategy, along with continued improvements.

“This asset is one that checked all of the boxes for us in terms of our value-add investment strategy,” Mike Lewis, Velocis principal, said. “The previous owner did an excellent job of laying the groundwork for the property’s long-term success. Building on their momentum, we plan to increase occupancy by providing fresh capital for physical enhancements, tenant improvements and leasing commissions.”

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