Texas Children’s Hospital purchases two CHI St. Luke’s Health—Baylor St. Luke’s Medical Center properties in the Texas Medical Center

Texas Children’s Hospital announced it reached agreement and closed with Baylor St. Luke’s Medical Center on the purchase of the Baylor Clinic Building located at 6620 Main St. and Fannin Tower at 6624 Fannin St.

“We value the incredible partnership we have forged with Baylor College of Medicine and St. Luke’s that spans more than 60 years, and we are proud of the rich history we share,” says Mark A. Wallace, president and CEO of Texas Children’s. “This acquisition represents an investment in our mission and expands our opportunity to further our commitment to the children, women and families we serve in the Houston community.”

Both buildings are substantially occupied by existing tenants, and CHI St. Luke’s Health along with Baylor College of Medicine, through its joint venture, plan to lease back a portion of each building until it completes its relocation to Baylor St. Luke’s Medical Center’s 27.5-acre McNair Campus. Texas Children’s will honor existing leases and intends to eventually occupy all available space as leases expire and tenants relocate. A facilities master planning initiative is already underway to integrate these two properties into Texas Children’s overall expansion and growth plans for pediatric and women’s services.

The Baylor Clinic Building was built in 2003, has 15 stories – 10 of which are parking – and comprises 227,670 square feet of rentable area. Fannin Tower was built in 1991, has 27 stories – six of which are parking – and provides 445,725 square feet of office and clinical space.

Dan Bellow, Mindy Berman and David Bale from JLL represented Texas Children’s in this transaction.