Overview
Matthews™ Healthcare Division is pleased to offer the opportunity to acquire a two suite multi-tenant medical office building in one of Fort Worth’s most affluent and high-growth sub-markets.
This is a 100% fee simple interest investment on a 0.82-acre parcel of land.
This 6,741 SF building is located on the Medical City Alliance Hospital campus, a 165-bed award-winning facility which completed a $53M expansion in 2021 to enlarge its emergency room and increase licensed beds. The subject property is also directly next door to Medical City Alliance Surgical Hospital, a 47,000 SF facility with seven operating suites and one cardiac lab. The on-campus nature translates to a strong potential referral base and added strategic value for any future tenant operations.
There is a value-add leasing opportunity for an owner upon acquisition. The availability of 4,594 SF allows a new owner to grow cash flow and improve yield upon stabilization. With an existing orthopedic layout in place, the suite offers a functional medical floorplan that can accommodate a wide range of healthcare users while keeping TI expenditures and lease-up time to a minimum.
Baylor Scott & White recently extended their lease by two years, and the lease also features a passive net lease structure with minimal landlord responsibilities. There is a three percent annual increase in the second year. Baylor Scott & white Healthcare is the largest not-for-profit healthcare system in Texas, with over 50 hospitals and more than 1,300 care sites. The company holds an investment-grade credit rating of AA-.
The building is located in the AllianceTexas Master-Planned Development, which is one of North Texas’s most significant long-term growth nodes. The development is cited as 27,000 acres and an estimated $130B in regional economic impact, with $10.2B created in 2024.
This is a compelling opportunity for a value-add investor to own a quality asset with a high-caliber tenant in an affluent area of Fort Worth.
Investment Highlights
On-Campus Fee Simple Building – The facility sits right next to Medical City Alliance Surgical Hospital, a 47,000 SF facility with seven operating suites and one cardiac lab. It is also on-campus to Medical City Alliance Hospital, a 165-bed facility, providing a strong potential referral base and added strategic value for any future tenant operations.
Established Regional Market Leader – Medical City Healthcare is the North Texas division of HCA Healthcare. It is one of the largest and most comprehensive healthcare systems in the region, encompassing 22 hospitals, nearly 5,500 active physicians, and over 17,000 employees across the Dallas-Fort Worth metroplex.
Value-Add Leasing Opportunity – The availability of 4,594 SF presents a built-in lease-up opportunity, allowing a new owner to grow cash flow and improve yield upon stabilization.
Turn-Key Medical Build-Out – With an existing orthopedic layout in place, the suite offers a functional medical floorplan that can accommodate a wide range of healthcare users while keeping TI expenditures and lease-up time to a minimum.
Health System Backed NNN Lease – Baylor recently extended their lease by two years, and the lease also features a passive net lease structure with minimal landlord responsibilities.
Leading Texas Health System Operator – Baylor Scott & white Healthcare is the largest not-for-profit healthcare system in Texas, with over 50 hospitals and more than 1,300 care sites. The company holds an investment-grade credit rating of AA-, underscoring its financial strength and low default risk. In 2024, Baylor generated approximately $15.5 billion in revenue.
Embedded in the AllianceTexas Master-Planned Development – This development is one of North Texas’s most significant long-term growth nodes. The development is cited as 27,000 acres and an estimated $130B in regional economic impact, with $10.2B created in 2024.
Affluent Surrounding Demographics – Fort Worth is a high-income area with average household incomes exceeding $113,000 within a five-mile radius, supporting strong payer mix and long-term demand for healthcare services.
Inflation-Protected Cash Flow – The Baylor lease features a three percent annual rent increase, offering investors built-in income growth and a great hedge against inflation.
Recession-Resistant Asset Class – The non-discretionary nature of medical care and its resilience during economic uncertainty has made healthcare real estate a strategic focus for both institutional and private investors nationwide.
Tax-Free/Top Destination State – Texas is one of nine states with no personal income tax, offering potential tax advantages for investors. According to U.S. Census data, Texas led the nation in net domestic migration in 2024.
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