Wednesday, January 8, 2014

Medical Office Building Sale in Austin, TX Arranged by Marcus & Millichap

The Jefferson medical office building, 1600 West 38th Street, Austin, TX

John Smelter
AUSTIN, TX, Jan. 8, 2014 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of The Jefferson, a 97,552-square-foot office building leased to healthcare, medical and other professional tenants in Austin, Texas. The terms of the sale were not released.

            John Smelter, a senior director of Marcus & Millichap’s Healthcare Real Estate Group in San Diego, represented the seller, Velocis Jefferson LP. The buyer is Healthcare Realty Trust Inc. Timothy Speck, first vice president, is Marcus & Millichap’s broker of record in the state of Texas.

            “The Jefferson is an extremely well located medical and professional office building with a stable cash flow and significant value-add potential,” says Smelter. “The previous owner spent approximately $700,000 in capital expenditure improvements in the last two and a half years.”

Timothy Speck
            “Based on the projected year one NOI, the cap rate for the sale is 7.05 percent,” adds Smelter.
Located at 1600 West 38th St. in Austin, the building is near three hospitals: the 425-bed Seton Medical Center, the 89-bed Seton Shoal Creek Hospital and the 58-bed Heart Hospital of Austin.

The University of Texas at Austin is less than three miles away. Seton Medical Center is Austin’s largest medical/surgical acute care center and was recently named the top hospital in Austin on U.S. News & World Report’s Best Hospitals 2013-2014 list.

            The Jefferson’s two major tenants are Seton Healthcare, which leases 24 percent of the building, and Austin Radiological Association, which leases 14 percent of the building.

The remainder of the property is leased to various medical and professional tenants on three-to-five- year leases. The Seton Healthcare Family is a member of Ascension Health, the nation’s largest nonprofit hospital system.

For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager
(925) 953-1716

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