LaSalle Acquires Memorial Hermann Medical Plaza in Houston; Trophy Medical Office Tower Located in the World’s Largest Healthcare Complex
CHICAGO (July 24, 2018) — LaSalle Investment Management (“LaSalle”) announced today that it has acquired Memorial Hermann Medical Plaza (“MHMP” or “the property”), a trophy medical office tower in Houston, on behalf of its U.S. core open-end real estate fund, LaSalle Property Fund (“LPF”). The seller, which opened the property in 2007, is a partnership comprising Mischer Healthcare, Memorial Hermann Health System (“Memorial Hermann”) and other private investors. Scott Galloway, Colby Mueck and Rusty Tamlyn with HFF represented the sellers in the transaction.
The 28-story, 510,000-square-foot, Class A+ medical office building is prominently located in the Texas Medical Center (“TMC”), a 2.1-square-mile medical district and the world’s largest medical complex, comprised of more than 60 member institutions, six major hospital campuses and more than 50 million square feet of healthcare, educational and research space. The complex represents the eighth largest business district in the U.S. and is home to many of the world’s most prestigious healthcare institutions, including McGovern Medical School at The University of Texas Health Science Center at Houston (UTHealth), The University of Texas MD Anderson Cancer Center and the Property’s namesake, Memorial Hermann.
MHMP is a state-of-the-art facility that boasts an iconic design with highly-efficient modern construction, and is further complemented by popular retail amenities, TMC campus connectivity and an active 13-level integrated parking garage serving both tenants and visitors. The property is currently 99 percent occupied and benefits from a strong anchor tenant in Memorial Hermann, which is one of the largest not-for-profit healthcare systems in Southeast Texas. Designed to serve as Memorial Hermann’s integrated medical office tower for its flagship hospital campus, MHMP features hard-to-replicate healthcare infrastructure including an ambulatory surgery center, a linear accelerator and various imaging and diagnostic systems.
Jim Garvey, Portfolio Manager for LaSalle Property Fund, commented: “Memorial Hermann Medical Plaza represents a unique opportunity to acquire a trophy medical facility offering a stable, attractive income return and good prospects for long-term appreciation. This transaction directly aligns with our investment strategy of purchasing well-located core assets that offer stable cash flows and upside potential.”
David Schreiber, Managing Director of Acquisitions at LaSalle, said: “As one of the nation’s largest and most prominent medical office buildings, Memorial Herman Medical Plaza is widely renowned for its best-in-class design, infrastructure, amenities and efficiencies. We are particularly attracted to the property’s complementary roster of prestigious medical office tenants and its exceptional location within one of the world’s most distinguished healthcare clusters.”
Steve Bolen, Managing Director and U.S. Sector Head for Medical Office at LaSalle, added: “For more than 15 years, LaSalle has been one of the most active private equity investors in the medical office sector. We believe that the case for medical office investment is even more compelling today than it was in 2001 when we acquired our first medical office property. This acquisition aligns LaSalle Property Fund with a market-leading, world-class healthcare system that is uniquely positioned to grow and thrive in the complex business of healthcare delivery.”
Walter Mischer, Jr., General Partner and President of Mischer Healthcare, commented: “Memorial Hermann Medical Plaza is universally considered one of the nation’s best medical office complexes and it has been a pleasure to work with Memorial Hermann in creating this Class A+ asset. I am pleased that LaSalle has succeeded Mischer Healthcare as the owner and I am certain they will provide Memorial Hermann and the other tenants with superior service.”
Located in a dense, amenity-rich and transit-oriented submarket, MHMP offers ease of access to Houston’s major thoroughfares and mass transit, connecting employees to affluent neighborhoods including Montrose, Midtown and West University Place; retail and entertainment options including Rice Village and Houston Museum District; and top schools.
About LaSalle Property Fund
LPF invests in and manages a diversified portfolio of high quality, stabilized real estate and real estate-related assets in the industrial, multifamily, office and retail sectors in top markets across the United States. Drawing from LaSalle Investment Management, Inc.’s 35-year record of accomplishment in core real estate on behalf of institutional investors, LPF aims to provide attractive risk-adjusted income returns with the potential for superior long-term capital growth through an investment process and platform that leverages LaSalle’s industry-leading market research.
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $60 billion as of Q1 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
This information is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of a private placement memorandum. Past performance is not indicative of future results.