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Shopping Neighborhood

Baytown Medical Complex

6051 Garth Rd, Baytown, TX 77521

Listing Price: $5,655,000

Cap Rate
7.21%
Gross SF
17,438
Rentable SF
17,438
Price/Gross SF
$324.29
Lot Size
1.69 acres
Year Built
2011

Investment Overview

Marcus & Millichap is pleased to present this one story, multi-tenant medical strip center that is 100% occupied. The Women's Healthcare Center of Baytown (35.1% of GLA) is currently paying $27.48 per square foot with a 21-year NNN Lease. The anchor tenant, Altus Health System, (45.7% of GLA) has a 5-year lease term remaining at $23.92 per square foot annually. Dr. Amir A. Rasheed (6.2% of GLA) has a 7-year NNN Lease currently at $26.47 per square foot annually and Dow Health (12.9% GLA) is paying $22.00 per square foot annually. In addition, Dow Health will exercise a new five (5) year NNN lease at $22 per square foot annually. An investor can capture a 14.93% Cash on Cash Return in Year 1 by procuring a new CMBS loan, 2 years interest-only.
The property is walking distance from H-E-B, Kroger, Academy, Panera bread and many other retailers. This exclusive opportunity allows an investor to acquire a steady stream of income, minimal management responsibilities, and multiple stable long-term leases. The subject property is in the Houston Metroplex area, it lies on the northern side of the Galveston Bay complex near the outlets of the San Jacinto River and Buffalo Bayou. It is the sixth-largest city within this metropolitan area and seventh largest residential community. Major highways serving the area are the Interstate 10 and Highway 146 with a surge of residential lots being built in new master-planned communities. Friendswood Development Co.s plans for the 524-acre Baytown Crossings master-planned community include four neighborhoods, each named for a Texas Revolutionary War-era settler. The first, Ashbel Cove, is jointly owned and developed with Atlanta-based Beazer Homes. It was scheduled for a grand opening in early 2020. It will include 107 acres and approximately 300 single-family homesites at completion.

The state of Texas saw the largest resident jump from 2017 to 2018 compared to any other state in the U.S. with over 379,000 people added. Investors are attracted to the state of Texas due to favorable tax laws, business friendly regulations, and smart spending. Texas levies no individual income tax and no corporate tax. According to CNBC Texas is the top state for business in America for the year of 2018

Investment Highlights

  • Prime Location on Garth Road (Major Thoroughfare) in Baytown near Interstate 10
  • 100% Occupied I Long Term NNN Lease Structures
  • Attractive New Financing Available I 14% Cash-on-Cash Return in Year 1
  • Majority of Tenants have Base Rental Escalations Within the Next Two Years

Exclusively Listed By

Shopping Neighborhood

Baytown Medical Complex

Listing Price: $5,655,000

Cap Rate
7.21%
Gross SF
17,438
Rentable SF
17,438
Price/Gross SF
$324.29
Lot Size
1.69 acres
Year Built
2011

Investment Highlights

  • Prime Location on Garth Road (Major Thoroughfare) in Baytown near Interstate 10
  • 100% Occupied I Long Term NNN Lease Structures
  • Attractive New Financing Available I 14% Cash-on-Cash Return in Year 1
  • Majority of Tenants have Base Rental Escalations Within the Next Two Years

Investment Overview

Marcus & Millichap is pleased to present this one story, multi-tenant medical strip center that is 100% occupied. The Women's Healthcare Center of Baytown (35.1% of GLA) is currently paying $27.48 per square foot with a 21-year NNN Lease. The anchor tenant, Altus Health System, (45.7% of GLA) has a 5-year lease term remaining at $23.92 per square foot annually. Dr. Amir A. Rasheed (6.2% of GLA) has a 7-year NNN Lease currently at $26.47 per square foot annually and Dow Health (12.9% GLA) is paying $22.00 per square foot annually. In addition, Dow Health will exercise a new five (5) year NNN lease at $22 per square foot annually. An investor can capture a 14.93% Cash on Cash Return in Year 1 by procuring a new CMBS loan, 2 years interest-only.
The property is walking distance from H-E-B, Kroger, Academy, Panera bread and many other retailers. This exclusive opportunity allows an investor to acquire a steady stream of income, minimal management responsibilities, and multiple stable long-term leases. The subject property is in the Houston Metroplex area, it lies on the northern side of the Galveston Bay complex near the outlets of the San Jacinto River and Buffalo Bayou. It is the sixth-largest city within this metropolitan area and seventh largest residential community. Major highways serving the area are the Interstate 10 and Highway 146 with a surge of residential lots being built in new master-planned communities. Friendswood Development Co.s plans for the 524-acre Baytown Crossings master-planned community include four neighborhoods, each named for a Texas Revolutionary War-era settler. The first, Ashbel Cove, is jointly owned and developed with Atlanta-based Beazer Homes. It was scheduled for a grand opening in early 2020. It will include 107 acres and approximately 300 single-family homesites at completion.

The state of Texas saw the largest resident jump from 2017 to 2018 compared to any other state in the U.S. with over 379,000 people added. Investors are attracted to the state of Texas due to favorable tax laws, business friendly regulations, and smart spending. Texas levies no individual income tax and no corporate tax. According to CNBC Texas is the top state for business in America for the year of 2018

Exclusively Listed By

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