LaSalle Investment Management’s core open-end US real estate fund has added a 28-story, 510,000sqft medical office building to its portfolio.
The investment manager said LaSalle Property Fund (LPF) has acquired Memorial Hermann Medical Plaza (MHMP) in Houston, Texas for an undisclosed sum.
Sources told IPE Real Assets that the $5bn fund paid around $400m for the asset.
The seller is a partnership comprising Mischer Healthcare, Memorial Hermann Health System and other private investors.
MHMP is located in the Texas Medical Center, a 2.1-square-mile medical district.
LaSalle said the property is currently 99% occupied and benefits from a strong anchor tenant in Memorial Hermann.
Jim Garvey, a portfolio manager for LPF, said: “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, a managing director of acquisitions at LaSalle, said: “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 US sector head for medical office at LaSalle, said: “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.”
Launched in 2009, LPF invests in and manages a diversified portfolio of stabilised real estate and real estate-related assets in the industrial, multifamily, office and retail sectors in top markets across the US.
