San Antonio's University Health purchased an office building last year in a $28 million deal to expand its administrative and back-office operations and save on leasing costs as it grows its healthcare system.
University Health, the only locally owned healthcare system in San Antonio, acquired a two-story, 142,500-square-foot office building at 6200 Northwest Parkway from Sentinel Net Lease. The deal has earned a 2025 CoStar Impact Award for sale of the year in San Antonio, as judged by real estate professionals familiar with the market.
The medical office building, near the South Texas Medical Center, is easily accessible for University Health staff members who will work at the property. It sits in the Northwest submarket of San Antonio, which has one of the lowest office vacancy rates in the city, hovering at 10%, according to CoStar data.
The deal offered University Health a place to strategically grow its business while giving Sentinel a successful exit from the office property.
About the deal: University Health purchased the two-story office building to house administrative and back-office workers. The property's amenities include a full cafeteria and advanced security systems. The seller, Sentinel Net Lease, said it sold the building for a profit two years after buying it. The building was completed in 2000.
What the judges said: Great Springs Project's Director of Development Sarah Esserlieu Khalil said the medical industry is crucial to the San Antonio economy, and this deal will reposition "a defunct office building into [a] medical office," in a move that is "exactly the kind of market activity we need." TC Austin Realty Advisors President Mike Reyna added that the expansion of University Health in this part of San Antonio strengthens the Northwest area as a "prime office destination."
They made it happen: Russell Noll, executive managing director, Transwestern Real Estate Services; Kelly Ralston, senior vice president, Transwestern Real Estate Services; Sentinel's Chief Investment Officer Dennis Cisterna; Chad Gunter, senior vice president of Transwestern Real Estate Services.