LaSalle acquires Memorial Hermann Medical Plaza in Houston

LaSalle Investment Management has acquired Memorial Hermann Medical Plaza (MHMP), a trophy medical office tower in Houston, on behalf of its U.S. core open-end real estate fund, LaSalle Property Fund (LPF).

The seller, which opened the property in 2007, is a partnership comprising Mischer Healthcare, Memorial Hermann Health System and other private investors.

The 28-story, 510,000-square-foot, class A+ medical office building is prominently located in the Texas Medical Center (TMC), a 2.1-square-mile medical district and the world’s largest medical complex, comprised of more than 60 member institutions, six major hospital campuses and more than 50 million square feet of healthcare, educational and research space.

The complex represents the eighth-largest business district in the United States and is home to many of the world’s most prestigious healthcare institutions, including McGovern Medical School at The University of Texas Health Science Center at Houston, The University of Texas MD Anderson Cancer Center and the property’s namesake, Memorial Hermann.

MHMP is a state-of-the-art facility that boasts an iconic design with highly-efficient modern construction, and is further complemented by popular retail amenities, TMC campus connectivity and an active 13-level integrated parking garage serving both tenants and visitors. The property is currently 99 percent occupied and benefits from a strong anchor tenant in Memorial Hermann, which is one of the largest not-for-profit healthcare systems in Southeast Texas.

“For more than 15 years, LaSalle has been one of the most active private equity investors in the medical office sector,” said Steve Bolen, managing director and U.S. sector head for medical office at LaSalle. “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. This acquisition aligns LaSalle Property Fund with a market-leading, world-class healthcare system that is uniquely positioned to grow and thrive in the complex business of healthcare delivery.”