Howard Hughes bags $14M in medical office sale to Houston Methodist

Will be first medical office in The Woodlands’ Creekside Park

Howard Hughes Sells Medical Office to Houston Methodist for $14M
Houston Methodist President and CEO Marc Boom and Howard Hughes Houston region President Jim Carman with Creekside Park Medical Plaza (Howard Hughes, Houston Methodist)

Howard Hughes Holdings offloaded Creekside Park’s first medical office, which it delivered last year.  

According to The Woodlands-based developer’s quarterly SEC report, it sold the Creekside Park Medical Plaza, at 26424 Strake Drive, for $14 million. Houston Methodist hospital system bought the two-story, 32,600-square-foot Class A medical office this month, property records show.

Houston Methodist plans to open a multi-specialty clinic akin to its Comprehensive Care Center in Pearland. As many as 10 providers are expected to move to the Creekside Park Medical Plaza, including primary care, orthopedic services, physical therapy and occupational therapy providers. It could open as soon as the first quarter of next year.

The property was sold in shell condition, and Methodist has the interior under construction, said Pincecroft Realty’s TJ Fry, the broker attached to the project. 

Construction started on the Creekside Park Medical Plaza in early 2022, and it was completed last spring. It is expected to be the first medical office in Creekside Park, one of the Woodlands’ 10 villages. Every other village in the Woodlands has at least one medical office. 

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In Houston, the cost of renting medical office spaces has gone up by about 60 basis points compared to last year, averaging $30.33 per square foot per year, according to Transwestern. Newer offices are charging higher prices because of strong demand even before they open. 

The Woodlands is emerging as its own burgeoning healthcare hub in Greater Houston’s Northwest corridor. St. Luke’s Hospital, Memorial Hermann and Texas Children’s Hospital all have presences there. 

Two medical offices totaling more than 300,000 square feet are under construction in The Woodlands: the Kelsey Seybold Springwoods Village Campus, at 2340 North Grand Parkway, and Memorial Hermann The Woodlands Medical Plaza 5 at 9250 Pinecroft Drive. 

Nearly one-third of The Woodlands’ workforce is employed in the healthcare industry, making it the leading job sector for the fifth year in a row, according to The Woodlands Area Economic Development Partnership.Houston Methodist has been busy cementing its footprint across the metro’s burgeoning medical hubs. In January, Houston Methodist leased 75,800 square feet in the Helix Park campus’ Dynamic One life science building, at 1840 Dynamic Way.

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