Houston Physicians' Hospital

Recession-Resistant Asset Class – The non-discretionary nature of medical care and its resilience during economic uncertainty have made healthcare real estate a strategic focus for both institutional and private investors nationwide.
Inflation-Protected Cash Flow – The lease features annual rent increases, the lessor of 3% or CPI, offering investors built-in income growth and a great hedge against inflation.
Tax-Free/Top Destination State – Texas is one of nine states with no personal income tax, offering potential tax advantages for investors. According to U.S. Census data, Texas led the nation in net domestic migration in 2024.
Nation’s Fifth Largest MSA – Houston has over 7.5 million residents and has the third largest number of fortune 500 companies in the nation. If Houston were a country, it would rank as the 24 th largest economy in the world.
High Density Market – The property has nearly 325,000 residents in a five-mile radius which creates strong demand for healthcare services.
Favorable Depreciation – Given the heavy build out at this facility, this opportunity offers investors the ability to capture more favorable depreciation advantages through a cost segregation study. *Investors to confirm with their own CPA.
Significant CapEx Improvements – According to the owner, approximately $60,000 was invested in renovating the building. Improvements included replacing Section B of the roof, installing new roof fasteners, applying a rust-inhibitive primer coating, and completing various additional repairs. Mechanical system upgrades consisted of replacing the original 2004 5-ton split system condenser and fan coil unit, as well as installing a new 50-gallon water heater. Together, these features significantly reduce the likelihood of
future capital expenditures.
Longstanding Aquatic Therapy Location – The property has operated as a dedicated aquatic physical therapy facility since its construction in 2004. For more than two decades, this location has supported continuous rehabilitation services, underscoring the sustained and growing demand for specialized recovery within the market.

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Patrick Graham