University Health’s Board of Managers unanimously approved a $50 million purchase of two medical office towers next to the closed CHRISTUS Santa Rosa campus in the South Texas Medical Center. System leaders say the space will provide room for specialty outpatient care and help reduce overcrowding at University Hospital. The deal, expected to close by late February, will allow clinics and testing to move out of the main hospital into nearby facilities.
Board sign‑off, building size and planned uses
The board unanimously approved the $50 million purchase of the two towers, which total about 200,000 square feet and are roughly 89% occupied. Much of the space is leased by CHRISTUS tenants, who are expected to move out as their leases expire. One tower connects to the vacant hospital via a sky bridge. University Health President and CEO Ed Banos told officials the space will be used for cardiology services and pre- and post-testing for transplant patients, according to the San Antonio Report.
How this follows last summer's hospital purchase
The newly targeted towers sit on the same 45-acre campus University Health bought last summer when it acquired the CHRISTUS Santa Rosa Medical Center, a deal local outlets pegged at roughly $71 million. That earlier purchase included a seven-story and a four-story medical office building and laid the groundwork for plans to reopen the site as Babcock Specialty Hospital, as reported by KSAT.
Who owned the towers
State project filings list the seller as "San Antonio MOB NW Medical Tower LLC" and show recent renovation permits for the buildings. The Texas Department of Licensing and Regulation confirms that entity on filings for Northwest Medical Tower I, and Bloomberg LEI records verify the investor group's name.
What comes next for patients and the campus
University Health officials say the towers will move high-volume outpatient and specialty services out of the main hospital, freeing inpatient capacity and easing parking at the flagship campus. Christa Olvera, director of real estate facilities, told the board the buildings have generated positive cash flow for about 20 years. Board Chair Jimmy Hasslocher called the purchase “a major milestone” for the health district, according to the San Antonio Report.
Big picture
The tower purchase is part of University Health’s broader expansion, which includes new hospitals and clinics across Bexar County as part of a multi-hundred-million-dollar plan. Observers say the acquisition will help the system meet outpatient demand and ease bottlenecks at University Hospital during renovations, tenant transitions, and the Babcock campus redevelopment, according to Becker's Hospital Review.
