Prescriptive Capital JV to Build Texas Medical Office Project

Rendering of Creekside Medical Office. Image courtesy of Prescriptive Capital

Prescriptive Capital, together with health-care developers Saber Street and CBK Interests, plans to develop a three-story, 45,000-square-foot medical office building in The Woodlands’ village of Creekside Park, Texas. Arch-Con Corporation will serve as general contractor for the project. Groundbreaking is scheduled for December 2022.

The 4.7-acre development site is located on Kuykendahl Road, close to the Indian Springs neighborhood and south of Carlton Woods at Creekside, one of the prominent residential communities in The Woodlands. A large physician practice group has pre-leased 80 percent of the property.

Saber Street’s Co-Founder & Managing Partner Chris Haley said, in prepared remarks, the health-care sector is underserved in Creekside Park. According to CommercialEdge data, there currently is only one medical office building under construction in the village, a 33,745-square-foot project taking shape at 26424 Strake Drive.

The same data provider shows The Woodlands’ medical office inventory encompasses nearly 1.1 million square feet across 15 properties. The most recent medical office building, a 209,906-square-foot property owned by Texas Children’s Hospital, came online in 2017.

While the U.S. medical office sector continues to show resilience in the face of economic uncertainty, medical office developments are still plagued by high construction material prices and supply chain issues. Medical office construction is expected to up the pace along with the rest of the real estate market when fundamentals return to normal.