Altera Fund Advisors acquired a 140,012 SF, 17-story Class B medical outpatient building in Houston, Texas. The building was purchased well below replacement cost with the intent to rebrand & revitalize the asset. Located less than 5-miles from the Texas Medical Center, the world’s largest medical center, River Oaks Medical Tower offers a unique opportunity to capitalize on an undervalued building and underappreciated location.
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This offering represents a unique opportunity to invest in a well-located, urban medical outpatient building which has been historically mismanaged, resulting in a currently under valued piece of real estate. The building is currently 68% leased with rents 30% below market. The property is being purchased for $99/SF and the partnership plans to invest $51/SF in capital improvements in order to reposition the property to a Class B+ asset, which is roughly 45% of the replacement cost of the building.