Transwestern Real Estate Services’ 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 percent 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 percent 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 percent, compared to the five-year average of 33.1 percent. 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.
