Stockdale Capital Buys 130 KSF Austin MOB

Stockdale Capital Partners has acquired 1401 Philomena @ Mueller, a 130,000-square-foot medical office building in Austin, Texas. Gemdale USA sold the asset, according to CommercialEdge.

The five-story property came online in 2023. Built on 1.7 acres, the project was subject to a $35 million construction loan that BMO Bank provided in 2021, the same source indicates. STG Design was the building’s architect, with Rogers – O’Brien Construction as general contractor.

The medical office sector continues to fare well in what is currently a challenging economic landscape. High occupancy and tenant stability are among the key factors attracting investors. Nevertheless, experts found that asset values have indeed decreased over the course of 2023.

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The LEED-Gold certified building features controlled access, wide column spacing and higher deck-to-deck heights, with floorplates ranging between 20,000 and 29,000 square feet. The health-care center also includes a 559-stall parking garage. According to the new owner, the asset marks the first non-affiliated, purpose-built Class A medical office building to be developed in Central Austin since 2023. GROW Pediatrics and Adolescent Medicine are among the property’s tenants.

Located at 1401 Philomena St., the health-care center is part of Mueller Austin, a 700-acre master-planned community. The urban village is a redevelopment of the former Robert Mueller Municipal Airport.

The building is adjacent to Dell Children’s Medical Center, has access to Interstate 35 and is less than 5 miles north of downtown Austin. Other medical providers in the surrounding area include Austin Emergency Center, CommUnity Care: David Powell Health Center and St. David’s Medical Center.