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no formal asking price yet...

One of the city's most recognizable buildings has been put on the block.

St. Luke's Episcopal Health System said today it is selling the O'Quinn Medical Tower at 6624 Fannin in the Texas Medical Center.

The 28-story twin-towered structure — whose spires resemble a pair of hypodermic needles — was built by the Hines real estate firm in 1990 and designed by renowned architect Cesar Pelli.

Selling the building will give the hospital system "additional financial resources to help St. Luke's strengthen its presence by renovating and expanding within the Texas Medical Center," St. Luke's said in a statement. It also said it is taking advantage of "a strong capital market."

http://www.chron.com/disp/story.mpl/business/5166565.html

"The sale of real estate by nonprofit health care institutions has become an increasingly common strategy in recent years. The sale will provide additional financial resources to help St. Luke's strengthen its presence by renovating and expanding within the Texas Medical Center."

http://www.bizjournals.com/houston/stories...24/daily30.html

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Hmm.. I wonder what they'd build to replace it? Hopefully something interesting in the TMC. We could use a 40+ story tower.

I hear St. Luke's needs the money to build their expansion project planned for the X-lot. X-lot is the small driveway between their current building, TMC Garage 1 and the Joint Linen Building. However, The Methodist Hospital still has them over a barrel that crimps these plans somewhat. These two institutions share the old Joint Linen building, with the property line running down the middle of it, but TMH has no reason to vacate it's portion to allow for the demolition needed to construct the current SLEH designed expansion. The Joint Linen Building also is structurally attached to the TMH Power Plant building, and one of TMH's cooling towers is actaully sitting on top of the SLEH portion of that building.

It's a sticky mess with these two competitors. They rarely talk to each other expect with lawyers present.

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Hmm.. I wonder what they'd build to replace it? Hopefully something interesting in the TMC. We could use a 40+ story tower.

I thought I read they were going to sell it and then lease space back ... sounds counterintuitive, but I guess they are going to use the money to expand their real estate elsewhere.

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I thought I read they were going to sell it and then lease space back ... sounds counterintuitive, but I guess they are going to use the money to expand their real estate elsewhere.

It does sound counterintuitive, but a leaseback is common in any industry where the owner has large capital requirements and needs to free up cash for future expansion while retaining use of the property. The transaction will also good for the buyer of the St. Lukes because they can pretty much count on the Health System being a long-term tenant, which makes financing the purchase that much easier.

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  • Highrise Tower changed the title to The O'Quinn Medical Tower by Cesar Pelli

Texas Children’s Hospital hires JLL to lease iconic Texas Medical Center tower

https://www.bizjournals.com/houston/news/2020/07/16/texas-childrens-hospital-jll-6624-fannin-tower.html

 

Quote

 

JLL will handle leasing for the iconic twin-spire tower in the Texas Medical Center, the commercial real estate firm said in a July 15 press release.

 

The building, formerly called the O’Quinn Medical Tower, is at 6624 Fannin. Texas Children's Hospital acquired the building, along with the nearby Baylor Clinic Building, in 2016 from Baylor St. Luke’s Medical Center, a joint venture between Baylor College of Medicine and CHI St. Luke’s Health.

 

At the time, Texas Children’s said it would lease back a portion of each building to Baylor College of Medicine and St. Luke’s Health through their joint venture until they complete their transition to the new Baylor St. Luke’s McNair Campus south of the Texas Medical Center. The LoopNet listing for 6624 Fannin Tower says St. Luke's Health is still a tenant in the building, and JLL's press release says the tower is home to nearly 30 institutional and private practices.

 

When the deal was announced in 2016, Mark Wallace, CEO of Texas Children's Hospital, told the Houston Business Journal that it was a once-in-a-lifetime opportunity.

 

 

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On 11/22/2020 at 2:32 PM, hindesky said:

The twin hypodermic needles are probably getting sharpened and new paint.

vYUKnja.jpg

GAy7LR4.jpg

They swapped out the distinctive white strobe aircraft warning lights at the end of the needles with red LED lights that flash alternatively. 

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  • Highrise Tower changed the title to The O'Quinn Medical Tower By Cesar Pelli
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