$13.1 Million Performing Medical Office Loan |… — Sale in Houston, TX

  • Price: Contact for price
  • Listing type: For sale
  • Asset type: Office
  • Location: Houston, TX
  • Size: 209,185 SF

Photos

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Description

In October 2024, a Senior Loan and a Mezzanine Loan (the “Loans” or “Notes”) were originated with balances up to $16.7 million and $4.5 million, respectively, to finance the acquisition of a medical office building in Houston, TX (the “Property” or “Collateral”). The Senior Loan is secured by a first priority deed of trust on the fee-simple interest of the Property, and the Mezzanine Loan is secured by the ownership interests in the borrowing entities which own the fee simple interest. The five-year notes included fixed interest rates of 7.5% and 11.0%, respectively, with initial maturity dates in December 2029. The Loans were later modified in June 2026 to repurpose the outstanding holdback funds and modify the maturity dates to December 2027. As of August 2026, the Loans are performing with a combined unpaid principal balance of $13.1 million. Constructed in 1979 and renovated in 2012, the 17-story medical office property totals 140,012 square feet of NRA and is located in the center of one of Houston’s most sought-after neighborhoods and highly trafficked medical districts. Situated on a 1.48-acre site, the property is undergoing an extensive capex plan and benefits from direct access to a 12-level parking garage. As of May 2026, the Property is 45% occupied. The offering presents investors with the ability to acquire a performing loan at an attractive basis with upcoming optionality.

Market Context

This office in Houston, TX is listed for sale across 209,185 SF. Compare it against other office listings for sale in Houston, TX — view the full market.

As of Q1 2026, the Houston office market showed a 26.1% vacancy rate, and average asking rents near $31.77/SF/yr. Source: multiple brokerage reports, Q1 2026.

Above-average vacancy gives buyers leverage and a wide set of comparables.

Office market FAQ

Is the Houston office market tightening or softening?
Vacancy is around 26.1% (Q1 2026).

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