CBRE Facilitates $142 Million Sale of Veterans Affairs Outpatient Clinic in Austin, Texas

CBRE has facilitated the $142 million sale of a 272,636-sq.-ft. outpatient clinic in Austin, Texas. The facility is operated by the U.S. Department of Veterans Affairs.

Will Pike, Lee Asher, Brian Pfohl, Cyrus Felfeli and Jordan Selbiger with CBRE represented the seller, Healthcare Property Advisors, in the transaction. The buyer was not disclosed.

“This transaction exemplifies the continued increase in capital searching for outpatient medical facilities that are viewed as recession resilient,” said Mr. Asher, Vice Chairman with CBRE.

Located at 7901 Metropolis Drive in Austin, Texas, the two-story, 272,636-sq.-ft. property is fully leased by the VA. Originally constructed in 2013, the outpatient clinic replaced older VA facilities in Austin, and at the time of completion was the largest freestanding medical clinic serving veterans in the country. The facility offers a myriad of services including physical therapy, mental health counseling, radiation treatments, prosthetic replacements, cardiology, and neurology among many others. These services attract more than 300,000 patients to visit this clinic annually, which is expected to increase as the veteran demographic grows in the region.

“The healthcare demand drivers in Austin promote the long-term viability of this build-to-suit facility for the Department of Veterans Affairs and add to the appeal of this stable investment property in a turbulent capital markets environment,” said Mr. Pike, Vice Chairman and Managing Director of the Net Lease Property Group and Corporate Capital Markets practice at CBRE. “Our team is pleased to have connected our client with a well-qualified and motived buyer.”