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Real Estate Forward

Memorial Hermann Health System

Houston, Texas

These assets together cover 110,636 square feet and are strategically located to take advantage of Houston’s booming healthcare landscape.

ESTIMATED VALUE:
$44.4 million

LEAD ATTORNEYS:

OTHER TEAM MEMBERS:

STATUS:
Deal completed September 2023

Winstead represented Big Sky in acquiring, financing, and restructuring a three-property medical office building portfolio fully leased by Memorial Hermann Health System. These assets together cover 110,636 square feet and are strategically located to take advantage of Houston’s booming healthcare landscape.

This complex transaction highlights Winstead’s depth and experience in real estate and corporate law, delivering significant benefits for the client. The portfolio presented a unique challenge: the properties were ground-leased to Big Sky’s seller, who then leased them back to Memorial Hermann. Big Sky sought to acquire the buildings and restructure the ownership and leasing arrangement to optimize its own and Memorial Hermann’s positions.

The Winstead team analyzed and implemented a unique solution to tackle the problem at hand. They terminated all existing leases and renegotiated new ones between Big Sky and Memorial Hermann. This approach not only helped Big Sky secure better rental rates compared to the pre-acquisition arrangement, but also allowed Memorial Hermann to benefit from property tax savings.

Winstead played a crucial role in navigating the complex financing aspects and addressing concerns from all involved parties. Our team demonstrated excellent skills in finding creative solutions, managing complex transactions, orchestrating collaboration between various stakeholders, and ensuring a successful outcome for Big Sky. Winstead’s deep understanding of the healthcare real estate industry was pivotal in crafting this innovative solution.