New Owner-Occupier Backfills Vacancy to Operate Private Dermatology Practice
January 21, 2021
San Antonio – Transwestern Real Estate Services (TRS) announces its San Antonio Healthcare Services team completed the sale of 1763 Medical Way, a single-story medical office building totaling 8,055 square feet in New Braunfels, Texas. Transwestern Vice President ‘Licia Shreves and Associate James Murry represented the seller, APZ Investments LLC.
“The COVID-19 pandemic prompted investment interest in smaller assets from users considering owning their real estate and capitalizing on stabilized properties to provide extra cash flow,” said Shreves. “With interest rates down and pent-up demand for this asset type, owners are motivated to sell while conditions remain favorable.”
Located in the rapidly growing city of New Braunfels, the Class B, multi-tenant building was 67% leased at the time of sale. Built in 2019, 1763 Medical Way offers superior accessibility that fit the needs for a user purchase. Leben Holdings acquired the property and will move its new private dermatology practice into the remaining space, bringing the building to 100% occupancy.
“Physicians continue to re-evaluate their office space needs due to COVID-19 and the debt market,” said Murry. “We’ll see more owner-occupier transactions in 2021 as private practices consider the value of owning their real estate and establishing new revenue streams.”
The New Braunfels medical office market vacancy rate sits at 34.5%, compared to the five-year average of 33.1%. Comprised of approximately 480,000 total square feet, the New Braunfels medical office market has seen over 169,000 square feet of new construction projects deliver in the last 27 months, presenting a great opportunity for users to lease quality space.
The Transwestern Healthcare Advisory Services team provides a full range of commercial real estate services including acquisitions, dispositions, agency leasing, tenant representation, asset services, and research throughout Texas.
About Transwestern Real Estate Services
Transwestern Real Estate Services (TRS) adds value for investors, owners and occupiers of all commercial property types through a comprehensive perspective and by providing solutions grounded in sound market intelligence. Part of the Transwestern companies, the firm applies a consultative approach to Agency Leasing, Asset Services, Tenant Advisory + Workplace Solutions, Capital Markets, and Research & Investment Analytics.
The privately held Transwestern companies have been delivering a higher level of personalized service and innovative real estate solutions since 1978. An integrated approach formed from fresh ideas drives value for clients across commercial real estate services, development, investment management and opportunistic programs for high-net-worth investors. The firm operates through 34 U.S. offices and global alliances with BNP Paribas Real Estate and Devencore. Learn more at transwestern.com and @Transwestern.