Central Health, the hospital district funded by Travis County, has acquired the Northview Business Center in Austin as part of a plan to convert office space into clinical facilities. The 260,000-square-foot building sits on about 25 acres at 9001 North I-35. According to county property records, the deal closed on December 9 with Chicago-based Northview Owner listed as the seller.
While the purchase price was not made public, the Travis Central Appraisal District most recently valued the site at $18.6 million for tax purposes. However, agenda materials from Central Health’s October 22 Budget and Finance Committee meeting indicate that the district proposed issuing $93.5 million in debt to fund the acquisition.
The documents describe Northview as a “priority need area” and outline plans to transform it into adult and pediatric clinical offices along with support space. The move is aimed at shifting services out of leased spaces, though it remains unclear which clinics will relocate.
Currently, about 70,000 square feet of the property is leased through 2029. One tenant appears to be Workforce Solutions Capital Area based on public listings tied to the address.
This acquisition comes amid a trend where public sector entities in Central Texas are purchasing large office properties rather than leasing them due to softer market conditions. For example, Travis County recently used eminent domain for an East Austin landfill acquisition amid ongoing litigation. The City of Austin has also been active in real estate purchases, including a former motorcycle dealership and several major office campuses such as Tokyo Electron’s former Southeast Austin campus for $87 million and One and Two Barton Skyway buildings for $107.6 million.
City officials have said these acquisitions are part of a long-term strategy to control costs by owning rather than leasing space because leasing can cost roughly twice as much over time.
