San Antonio-based University Health is expanding its outpatient footprint with a $50 million acquisition of two medical office towers tied to a recent hospital purchase, the San Antonio Express reported Jan. 26.
In October, University Health closed its $71 million acquisition of Christus Santa Rosa Hospital—Medical Center from Irving, Texas-based Christus Health. Christus previously sold the buildings to a third party, but as part of University Health’s acquisition of the hospital, it received the right of first offer to purchase the buildings, according to the report.
About 89% of space in the towers is occupied by medical tenants and the rest is vacant, according to the report. University Health currently leases space in the towers and will take over about 30 leases after the deal closes on Feb. 23.
University Health President and CEO Ed Banos told the news outlet that purchasing the towers is expected to generate modest returns while also allowing the system to shift outpatient services out of its main hospital, which faces parking and space constraints.
The health system is undergoing a $20 million renovation on Santa Rosa Hospital, which will be renamed Babcock Specialty Hospital and is expected to open by the end of this year.
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