CBRE Advises on the Refinancing of 11-Property Medical Portfolio in Dallas and Houston MSAs

CBRE helped secure permanent financing for an 11-asset, medical outpatient portfolio concentrated in the Dallas and Houston MSAs. The portfolio totaled 258,000- square-feet and was approximately 81% leased at closing.

Zack Holderman and Jesse Greshin of the CBRE U.S. Healthcare Capital Markets’ Debt & Structured Finance team, alongside its partners Chris Bodnar, Brannan Knott, Mindy Berman and Cole Reethof, acted as the exclusive advisors to the sponsor and existing owner, Pinecroft Realty.

The diverse, multi-tenant portfolio includes 37 tenants with a variety of healthcare companies and specialties, including credit tenants such as St. Luke’s Health System (Fitch: A+) and Texas Children’s Hospital (S&P: AA), as well as several established and well known regional physician groups and local practices. The portfolio represents strong, in-place cash flows with additional upside achievable through lease-up and mark-to-market opportunities.

“The successful closing of the Pinecroft portfolio is evidence of improving health of the debt capital markets and a reflection of strong sponsorship aligning with motivated bank capital,” said Zack Holderman, CBRE’s Senior Vice President of the U.S. Healthcare Capital Markets practice. “We are happy to have achieved a cash-out refinance and strong, sub-6% interest rate for the Pinecroft team.”

All 11 assets are located in either the Dallas or Houston MSAs, two of the fastest growing cities in the country. Houston and Dallas host almost 10% of the Fortune 500 company headquarters, including McKesson AT&T, ExxonMobil, Southwest Airlines, HP Enterprise and more. Houston is home to the Texas Medical Center (TMC), the largest medical complex in the world, spanning over 1,300 acres and 60 member institutions, attracting new investment and millions of patients annually.

“We’re very pleased with the outcome of this refinancing, which provides long-term stability across a diverse portfolio of medical assets in two of the country’s fastest-growing markets,” said Andy Lopez, Pinecroft Realty’s Director of Asset Management. “This transaction strengthens our ability to support existing tenants while continuing to invest in the healthcare communities we serve. CBRE’s team was an exceptional partner throughout the process, and their expertise was instrumental in achieving such a strong result.”

Locally headquartered in The Woodlands, Texas, Pinecroft Realty is a full-service real estate company, offering leasing and brokerage services, property management, investment and development expertise.

Since their inception in 2003, Pinecroft Realty has completed over $2.5 billion of real estate transactions, nearly $850 million in healthcare alone. To learn more, visit www.pinecroftrealty.com.