Investment firm LaSalle Property Fund purchased Memorial Hermann Medical Plaza in Houston for $405 million in July, The Wall Street Journal reports.
Here's what you should know:
1. Financials weren't disclosed, but The Wall Street Journal learned from a source that the price tag was $405 million.
2. Memorial Hermann anchors the 28-story, 500,000-square-foot building, which is 99 percent occupied.
3. It was the highest price ever paid in the U.S. for a medical office building, indicating healthcare properties are popular among real-estate investors due to an aging population.
4. The previous record transaction for a single medical office property was Commerzbank AG's acquisition of a 25-story, 390,000-square-foot office building in New York City for $332.5 million earlier this year. NYU Langone Medical Center is the exclusive leaseholder.
5. Medical office buildings are considered a "safe investment" because they're viewed as less susceptible to reimbursement and regulatory changes, The Wall Street Journal reports. Medical office buildings often include outpatient surgery centers, which could benefit from efforts to reduce costs and shorten hospital stays.
6. Competition for medical office buildings is intense because they're more easily converted into other properties, according to a CBRE report The Wall Street Journal consulted. Medical office buildings also have predictable income streams, which is appealing to investors, Mizuho Americas Research Managing Director Richard Anderson told the news organization.