Bellaire Office Building Sold, Market briefs

In Houston, Edloe Ventures, a Houston-based private real estate investment firm, has expanded its healthcare portfolio with the purchase of Bellaire Medical Plaza, a three-story building with potential for upside through filling vacancy.

In Cbre brokered the sale of the 57,988, SF medical outpatient building at 5420 Dashwood Drive.

Built in 1994 and renovated in 2019, the building is located on the edge of Bellaire in the city of Houston. Legacy Community Health, the Texas Gulf Coast regional health system, serves as anchor tenant following its lease in 2023. The property is 54% leased to tenants including Laboratory Corporation of America and local and regional physician and health related practices.

“This asset provides an attractive investment basis well below replacement cost in one of the leading healthcare markets in the Sunbelt and nation,” said Reethof, a First Vice President with CBRE’s U.S. Healthcare Capital Markets practice. “Edloe Ventures should be well positioned to benefit from the healthcare demographic and lease-up of the remaining space, which already offers a diverse tenant roster and is anchored by a regional health system.”

The deal follows Edloe Ventures’ recent purchase of Greenhouse Medical Plaza, a 116,8690-SF medical outpatient at 2051 S. Greenhouse Road in West Houston.

The Bellaire submarket posted a vacancy rate of 25.9% for medical office space in the first quarter, as stated by Transwestern. That compares with 16.3% for the Houston region overall. The Bellaire medical office submarket absorbed 10,974 SF in Q1, as stated by Transwestern.

Bellaire Medical Plaza is within five miles of the Texas Medical Center, the world’s largest medical complex encompassing more than 50 million SF of space and 60 different institutions. It is within one mile of a growing concentration of medical practices in buildings along Loop 610 West. Bellaire, which surrounds the building to the south and east, has an average household income that is 2.3 times that of the greater Houston region, as stated by CBRE.

Chris Bodnar, Brannan Knott, Zack Holderman, Anthony Sardo, Cole Reethof, and Jesse Greshin of CBRE U.S. Healthcare Capital Markets, along with Brandy Bellow Spinks and Max Lozmack of CBRE’s Houston Healthcare Leasing team and Scott Carter advised the seller.