|GPE Commercial Advisors announced the sale of a 3,756 SF medical office condo located at 10750 W. McDonald Rd., Ste. F600 in Avondale. The property sold for $750,000 ($192/SF).Senior Vice President Bret Isbell represented the seller, McDowell Asset Management, L.L.C.. Doug Searle of Strategic Commercial represented the buyers, Paul and Linda Gentilotti. Sheila Hunter with First American Title closed the transaction.|
A patient sits in the ICU at Banner Health’s Fairbanks Memorial Hospital in Alaska.
It’s late, many of the staff have gone home. He watches the glowing blinks of the machines monitoring his vital signs lighting the room in little blue and green bursts. Suddenly, a nurse is beckoned to his bedside by an abnormal fluctuation in his stats. The patient’s physician is notified and, if off-duty, with the press of a button, a critical care specialist or nurse sitting in what’s affectionately called “the bunker,” staffed 24/7 by highly specialized physicians known as intensivists at Banner Desert in Mesa, can appear on a two-way video communications system to assist.
This is the future of medicine. Though Banner Health has been working on its eICUs in the seven states where its located since 2006, telemedicine is continuing to affect change throughout real estate.
Behind the Screen
A COMPACCS study found that patients who would need critical care require, on average, 45 minutes of an intensivist’s time per day, according to “The Critical Care Workforce.” After crunching the numbers, the report claims ICU patients use 18 million ICU days every year. This is on the condition that only a third of ICU patients are seen by an intensivist. To meet this demand, 3,100 intensivists would have been required to treat the patient demand in 2000. That’s more than 65 percent of those who were available in the U.S.
There’s a shortage of these critical care specialists, even 15 years later. This has a direct effect on care.
Mortality rate in ICUs is between 12 and 17 percent, according to U.S. Department of Health & Human Services’ “The Critical Care Workforce: A Study of the Supply and Demand for Critical Care Physicians.”
“If demand grows only as a result of the growth and aging of the population, demand for intensivists will increase from about 1,880 in 2000 to 2,600 in 2020 (an increase of about 38 percent),” according to “The Critical Care Workforce.”
“Every ICU could hire a specialist, but it would outstrip the supply in the entire country,” Bollinger says.
With the Affordable Care Act, hospitals are seeing inpatient days decrease. The reimbursement methodology has turned toward value and outcomes at affordable costs versus being reimbursed for doing more, says Kathy Bollinger, vice president of academic delivery at Banner Health.
“There is a change in incentives to provide the right care in the right setting at the right time,” Bollinger says.
Inpatients are spending fewer days in hospitals, and bed and room quantity focuses are now on quality rooms with the appropriate infrastructure.
When Banner Health renovates the patient tower at the existing University Medical Center in Tucson, it will only add 10 additional beds.
“The hospitals are not getting bigger, but they need to get smarter,” said Bollinger.
Banner Health has 500 of its senior patients participating in a pilot program. They are provided an iPad and home technology that facilitate e-visits from their physicians.
“Our early evidence on that project is we’re decreasing those patients’ trips to the emergency department,” Bollinger says.
Bollinger says hospitals need to get smarter, and DPR’s national healthcare leader Hamilton Espinosa agrees.
“Their payer mix is getting thrown off skew by the amount of Baby Boomers and reimbursement rates offered by Obamacare,” he says. “The need to be smarter…part of that is leaner, smarter operation.”
The amount of technology used by a hospital requires a larger amount of data that must be managed. This requires updates. Hospitals have also been upgrading their presentation.
“Banner is (Arizona’s) largest hospital system, so they have been moving the fastest and doing the largest amount of work in terms of positioning themselves to streamline and provide healthcare in more efficient manner,” says GPE Commercial Advisors Executive Vice President Julie Johnson. She is referring to the number of satellite Banner clinics that have popped up in the East Valley. There is a grab for market share, she says.
“Dignity has been looking at several different clinics,” she says. “I don’t think they have been implementing them as quickly as Banner.”
These large hospital care providers can afford to expand. However, clinics that have been traditionally geared toward lower income patients are now in a market where these patients have Obamacare and the power of choice. Johnson says Adelante and Mountain Park facilities have expanded their programs to compete. Most recently, Adelante Healthcare in Peoria moved into a retail center and put a huge emphasis on outfitting the space with attractive interiors.
“Real estate is a really expensive part of healthcare delivery,” says Johnson. “(Telemedicine) changes how real estate is delivered. It may not change quickly. People still need to be touched and seen, but it will definitely evolve and change.”
In addition to the adoption of telemedicine, the healthcare industry is seeing aesthetic changes.
There is a greater emphasis on patient care and reducing the amount of time a patient stays at the hospital as well as return trips.
“I think the hospital campus is always going to be a hub of activity, but there is more and more being done at these outpatient clinics,” says Johnson. “Heart surgeries will soon be done in outpatient settings. There is less of a need for hospital beds and more of a need for ambulatory settings. It’s cheaper to provide (care) in those settings. The synergies of proximity around hospital campuses will always be there. Even though the trend is for clinics to be off-campus in the hub and spoke method from 12 years ago, there will always be a synergy.”
For example, HonorHealth, formerly John C. Lincoln, built Sonoran Health and Emergency Center that is an emergency department with an attached clinic. In the event of needing a hospital, patients are transferred to Deer Valley.
“The actual patient is going to have a lot more choice in today’s market,” Johnson says. “There is going to be more hospitality element in providing healthcare. People want to choose it because of health care but also because it has a nice hospitality setting. As more people are having the ability to control their healthcare, if their first $5K is out of pocket and they have a choice of where to get an MRI or where to have my baby, they’re going to go where they’re most comfortable.”
GPE Commercial Advisors, one of the oldest privately owned commercial real estate firms in Arizona, secured the sale of a 5,274 SF one-story medical office building located at 7700 East Indian School Road in Scottsdale. The building sold for $975,000 ($185/SF).
Executive Vice President, Julie A. Johnson, CCIM, and Senior Vice President, Alexandra Loye worked on behalf of the seller, 7700 Medical, LLC.. Executive Vice President, Nicholas A. Pelusio, and Senior Vice President, Kevin Helland, worked on behalf of the buyer, Diamondback Commons II, LLC, whom intend to occupy the property for administrative use.
Asked why the buyer acquired the building, Kevin Helland stated: “The building was purchased to permit Diamondback Drugs, a locally-based, rapidly growing veterinary compounding pharmacy; to expand its footprint in the Old Town Scottsdale sub-market.”
A state-of-the-art medical campus will soon be built at the northeast corner of Loop 101 and 90th Street, on the Salt River Pima-Maricopa Indian Community, less than two miles from the Scottsdale Healthcare Shea Medical Center.
The 43-acre, mixed-use development will be named 90th Street Medical Campus.
“We have had tremendous interest for this extraordinary project from parties all over the country and overseas,” stated Julie Johnson, Executive Vice President with GPE Commercial Advisors, which has the exclusive listing to market this development. Johnson and Senior Vice President Alexandra Loye are the listing brokers for the property.
“With its excellent demographics, freeway signage and visibility, access and location, it’s perfect for all healthcare providers—and it’s certain to generate hundreds of new jobs,” says Loye.
Developed in partnership with Grosvenor Holdings and Healthcare Development Partners, the campus will include a 100,000 square foot Behavioral Hospital, already leased and in the planning stage. The project also calls for over 400,000 square feet of healthcare space for lease and sale, including a multi-tenant medical office building, a hospital-sponsored out-patient center, senior housing and complementary retail pads.
Nearby attractions include the Arizona Diamondbacks’ spring training facility, Talking Stick Resort and Casino, and the future OdySea Aquarium.
The demographic advantages of the North Scottsdale area include high median household incomes and a high-density insured population which is sure to attract the highest quality healthcare providers.
Johnson said the region has a high demand for physicians that will only increase in the near future. “A recent Physician Needs Assessment shows a statistical demand for medical professionals across almost every discipline, now and over the next five years,” she said. “And as a fast-growing area with lots of new families, there will be an especially high need for family practitioners and OB/GYNs.”
“This type of project is especially significant now, because we’re starting to see new development again for the first time since the downturn a few years ago,” said GPE Companies Founder Ron Genovese.
He continued, “With the number of good jobs this development will create, it really bodes well for the community. We’re just so pleased to be involved with this project.”
The Affordable Care Act has upended the healthcare landscape, and along with it, the office footprint for many physician practices. Fast-changing technology and related healthcare reform requirements are also shaping tomorrow’s medical spaces.
Meanwhile, demand for medical office buildings will increase up to 20 percent by the middle of this decade, estimates the Urban Land Institute. During the next 10 years, demand for space is expected to increase by more than 60MSF.
Are you ready to take advantage of the ongoing shifts in healthcare real estate? Most owners are finding it difficult to make smart real estate acquisition decisions amid these seismic shifts.
The average medical office building tenant understandably focuses on patient care — not real estate. Current and future owners of medical office buildings will find themselves navigating challenges brought on by the new healthcare laws, all while working with hospitals or hospital-employed physicians. Prospective owners may lack the local knowledge of hospital politics and other facts necessary to make smart acquisition decisions.
That’s why working with companies such as GPE gives buyers a healthy advantage. From working within the hospital systems to working with doctors and medical users, to leasing, developing, marketing, selling and consulting, GPE’s staff offers a full complement of skills, experience, and above all, local knowledge of Arizona’s medical office market. Choosing to work with an expert in healthcare real estate will get the answers to questions many buyers don’t even know to ask.
GPE Companies announced Monday the decision to appoint Brooke Askew-Rossi to chief people officer. Askew-Rossi, who joined the firm in 2007, was formerly the director of business development and employee engagement.
In her new role, Askew-Rossi will manage human resources, and oversee talent management and acquisition. She will also continue her previous work maintaining property associations, promoting employee engagement and developing business relationships outside the firm. The company’s growth during the past two years, with its expanding roster of brokers and staff, spurred GPE to designate an official human resources liaison.
The title chief people officer reflects GPE’s core values, including the idea that happy and fulfilled staff members are integral to the company’s success. That philosophy has helped GPE land on the Phoenix Business Journal’s Best Places to Work list four years running. “That’s a huge accomplishment,” Askew-Rossi said, adding that she looks forward to continuing the momentum.
“I’m excited to promote synergy around the office, making sure everybody has the tools they need to thrive,” Askew-Rossi said. “I love to see other people succeed.”
“Brooke genuinely cares about people,” said President David M. Genovese. “Her terrific people skills and compassion already lead people to seek her out for questions and concerns around the office. The appointment solidifies her as the go-to person for human resource issues.”
During Askew-Rossi’s tenure at GPE Companies, she has also worked as an assistant property manager and association manager. Before joining GPE, she worked for 11 years in property management with an emphasis on associations.
Twenty-thirteen marked GPE Companies’ 40th anniversary, and to celebrate, the company mounted a yearlong campaign of giving, called 40 for 40. The effort resulted in a cornucopia of critical supplies delivered to multiple Valley charities.
“The community has supported us wholeheartedly throughout GPE Companies’ 40 years, and we’re grateful for the opportunity to give back,” said company President David M. Genovese. “With so many deserving charities in the Valley, selecting ones to support was difficult.”
Each month, employees set a goal of collecting 40 items particular to the chosen organization. They exceeded the goal every time.
For St. Mary’s Food Bank, an array of food items will satisfy the hunger of needy families. AnySoldier.com received boxes of everyday essentials to send to troops in Afghanistan. The rescue pets waiting for adoption at HALO and Friends for Life now have refreshed supplies.
Children participating in Salvation Army’s Kinder Ready program will have new backpacks to carry their books. Mentally and physically disabled residents of Ozanam Manor, a temporary home, received 40 cases of bottled water. Central Arizona Shelter Services received blankets to keep residents warm. Children with an incarcerated parent touched by Angel Tree, a Christian-based program that spreads religion to inmates and their families, received new toys.
“GPE values being a part of and contributing to the community in which we live and work,” said Genovese. “We hope in small way the donated items will make a difference.”
As we end 2013 and begin 2014, the question healthcare landlords and tenants are asking is, “How is the Affordable Care Act (ACA) going to affect me as it is implemented?” Providers continue to remain uncertain of their practice’s future by requesting shorter lease terms and renewal terms. Healthcare organizations such as Banner Health (“Banner”) have been purchasing medical office buildings and retail centers near their hospitals at “bottom-of-the-market” prices and becoming owner-users of these properties. On Feb. 15, 2013, Banner purchased 755 E. McDowell Rd., a 93,411 SF property for $6,169,742 ($66.05 psf) near Banner Good Samaritan Health Center in Phoenix. Near Banner Baywood Health Center, Banner purchased a 103,411 SF retail center called Cooper Village, located at 6704-6744 E. Broadway Rd., Mesa, for $4M ($38.68 psf) on April 4, 2013. On the provider side, Banner has been purchasing practices and placing them in these properties.
The leasing statistics in the Phoenix market prove to show little change from Third Quarter 2013 to 4Q 2013. The average lease rate remains steady in the 4Q at $21.99 full service from $21.72 in the 3Q, according to CoStar. The average lease rate has been at this level for most of 2013 and the vacancy remains at +/-30%. The above data is comprised from 324 medical office buildings consisting of 10KSF or more, for a total of 12,580,074 SF.
In the 4Q 2013, the medical office/investment sales continue to improve as we see larger properties change hands and little or no distressed assets traded. According to CoStar, there were a total of 12 medical office sales transactions in the 4Q, 2013 including three large investment sale transactions; owner/users including John C. Lincoln Healthcare Network and two others that purchased smaller medical office buildings; only one REO sale; and the remaining are smaller investment sales of Class-C medical office buildings. The total sales volume for the 4Q 2013 was $57,496,412, with an average price per square foot of $143.44, decreasing from $204.80 in the 3Q, 2013.
Details for the three large investment sale transactions for the Fourth Quarter 2013 are below:
Copper Point , 3530 & 3570 S. Val Vista Drive, Gilbert, AZ 85297
93,961 SF building sold Dec. 27, 2013 for $108.56 per SF for a total of $10.2M. Built in 2008, WCCP Copper Point, L.L.C. purchased this property from Investment Equity Development, L.L.C. Kathleen M. Morgan, CCIM and Trisha A. Talbot of GPE Commercial Advisors are leasing this property.
Mercy Medical Commons, 3645 S. Rome Drive, Gilbert, AZ 85297
46,732 SF building sold Dec. 23, 2013 for $303.86 per SF for a total of $14.2M. Built in 2010, MedProperties, L.L.C. purchased this property from Gilbert Mercy Medical Partners.
McAuley Building, 500 W. Thomas Road, Phoenix, AZ 85013
168,511 SF building sold Oct. 24, 2013 for $123.41 per SF for a total of $20,795,381. Built in 1994, Heitman, L.L.C. purchased this property from LaSalle Investment Management in a bulk portfolio sale, including MOB assets in Arizona and California.
Senior Housing Supplement
Senior housing continues to be a “hot” topic as we continue to retire “baby boomers” in record numbers. Questions of how the changes in healthcare will affect the services offered in this healthcare segment, and how the real estate for this industry needs to change and/or grow to meet the current and upcoming demand are still being discussed.
The demands for senior housing is not only defined by need, but especially for independent and assisted living the delineation starts with public versus private pay. Then, within private pay, a number of models and demographics are affected by a variety of income levels. According to the Senior Care Investor, November, 2013 forecasting the supply and demand of senior care facilities, decisions will have to be made on whether to remodel, sell and/or reinvest into developing new facilities.
Relating senior housing demands to our local market, in November 2013, the National Investment Center for the Seniors Housing and Care Industry (NIC) reported that Phoenix is among the top five markets with assisted living properties under construction. The top five markets account for 43 percent of the assisted living construction nationwide.
In other local news, Encore on First, a tax-subsidized senior-housing complex located in downtown Mesa, opened in December 2013. Encore located at 25 West First Avenue Mesa, Arizona is a five-story, 81-unit complex offering its residents the opportunity to walk to nearby venues including the Mesa Arts Center, restaurants and future light rail, according to the Arizona Republic. One Encore resident pays $550 monthly for her apartment with the federal tax credits offered for this facility.
CoStar reports two senior care facility transactions in the 4Q, 2013.
Casa Valle, 5516 E. Thomas Road, Phoenix, AZ 85018
13,580 SF rehabilitation center sold for $92.05 per SF for a total of $1.25M. Built in 1949, Crossroads, Inc. purchased this property from Primer Paso, L.L.C.
Country Meadow Guest Home, 2815 W. 48th Street, Phoenix, AZ 85008
5,016 SF skilled nursing facility sold for $69.78 per SF for a total of $350,000. Built in 1949, Bahati, L.L.C. purchased this property from an individual investor.
GPE Commercial Advisors, one of the oldest commercial real estate firms in Arizona, has many reasons to celebrate another strong year of absorption. Its 2013 results are as follows:
• Approximately 380,000 SF of leased space
• Approaching 2.9 MSF in real estate sales
• Exceeding $70M in generated revenue
President of GPE, David M. Genovese said, “For another year I am extremely proud of our team and the results they produced. These results are a testament to their solid work ethic, creativity, strategy, integrity and dedication to performing for our clients. That same culture is what is evident in every aspect of what GPE does, not just sales and leasing, but property management, accounting, consulting, marketing and even human resources.”
GPE Commercial Advisors welcomed Senior Vice President Alexandra Loye to its brokerage team on Wednesday. Loye brings more than five years of commercial real estate experience throughout the Metro Phoenix area. She specializes in seller, buyer and tenant representation for medical office and office users.
Loye closely tracks the medical office and office market and measures the financial and economic trends affecting the Phoenix market.
Prior to joining GPE, Loye was with NAI Horizon where she worked with clients in the public and private sectors, investors and developers as well as servicers, receivers and REO asset managers. She serves as a committee member on the Developing Leaders Philanthropy Committee of NAIOP (National Association of Industrial and Office Professionals), is involved with AZCREW (Arizona Commercial Real Estate Women) and is a board member for the Epilepsy Foundation of Arizona.
Fundamental shifts underway in health care, influenced by the Affordable Care Act and senior citizens’ changing needs, are shaping not only the care people receive, but the buildings in which they receive it, panel members said at the inaugural GPE Health Care Forum held on Oct. 24.
Big trends involve hospitals and health systems buying doctors’ practices and consolidating the physicians in new clinics that range anywhere from 7,000 to 40,000 SF. Meanwhile, hospital systems like the newly formed Scottsdale Lincoln Health network, a merger of John C. Lincoln Health Network and Scottsdale Healthcare, will construct mini clinics under 1,500 SF. That leaves a big question mark over the fate of 1,500 to 2,000 SF doctors’ offices in multi-tenant buildings.
Even before Congress approved the Affordable Care Act, Sun Health knew it had to change its business model due to high costs and the rapidly expanding population of elderly people. In 2010, about 40 million people over the age of 65 lived in the United States. In 40 years, that number is expected to double.
“The problem with that is the utilization of medical care starts skyrocketing after 65,” said Joe La Rue, Sun Health’s executive vice president. Most elderly people develop dementia or Alzheimer’s, then “you’re really consuming that health care dollar.”
In response, Sun Health merged its two hospitals, Del E. Webb and Boswell, with Banner Health in 2008. Sun Health retained its other assets, and shifted its health care focus from caring for the sick to healthy living and providing a continuum of care, from senior citizen to end of life.
Senior citizens’ changing tastes are also influencing design and construction decisions, La Rue said. Trends in nursing care and assisted living are moving away from three and four people to a room to private spaces with green design that resemble an ordinary home.
Meanwhile, freestanding hospitals are also changing their business plans. Scottsdale Lincoln Health Network plans to, over the next five years, add up to 300 physicians and construct eight buildings each year, said Nathan Anspach, senior vice president of John C. Lincoln Physician Network Development and Accountable Care.
New structures will include a series of mini clinics ranging from 800 to 1,500 SF, in addition to ambulatory centers ranging from 25,000 to 40,000 SF that come equipped with operating rooms and state-of-the-art imaging equipment.
“We’re looking more and more at places that we can put four or five doctors or more, that are able to stay open seven days a week and into the night,” Anspach said. Signage is emerging as a key factor for these mid-size spaces that panel attendees said will soon proliferate. Since the facilities are not located near hospitals, branding is critical.
Many of those doctors are coming from independent physician practices that hospitals are now buying up. Today, hospitals or health care systems employ about 60 percent of physicians, but that number will eventually rise to 90 percent, predicted Bill Foulkes, regional vice president at Hammes, a healthcare consultancy. Meanwhile, retail clinics operated by drug stores and supercenters like Walmart are expected to abound, along with other community clinics that make health care accessible for people no matter where they live.
When hospitals buy physician practices, doctors abandon their 2,000 SF offices in multi-tenant buildings, creating a glut of vacancies, said Julie Johnson, executive vice president at GPE.
“There’s going to be these holes that are left in some of these larger medical office buildings,” said Johnson. “That’s one of the challenges that some of the medical office owners have right now. If you don’t have large contiguous spaces, how can you find them? How can you relocate people and make some space that’s large enough so you can do some of these new leases?”
GPE Commercial Advisors released its 3Q healthcare report for the Phoenix Metro.
At the end of the 3Q 2013, the government had shut down and the debate over the debt ceiling was at an impasse over the funding of the Affordable Care Act (ACA). Not only are healthcare providers trying to understand the impact ACA will have on their practice, the government is at a standstill trying to understand its implementation and long-term effects and trying to implement it efficiently, starting with using exchanges to shop for health insurance. As a result, the effect the ACA will have on healthcare investment real estate continues to remain unknown. As the statistics in the Phoenix market prove to show little change since last quarter, nationally, the medical office/investment sales have been strong.
The average lease rate dropped slightly in the 3Q to $21.79, full service from $21.92 in the 2Q, according to CoStar. The vacancy continues to hover at +/-30%. The above data is comprised from 325 medical office buildings consisting of 10,000 SF or more, for a total of 12,995,709 SF.
Medical Office Sales Activity
In the 3Q 2013, there were 29 medical office sales transactions comprising of bulk portfolio sales, multi-tenant and owner/users. While the bank-owned properties are drying up, there still continues to be deals in the market. The total sales volume was $95,533,190, with the average price per square foot of $204.80 and an average cap rate of 8.33%.
Montecito Medical Investment Company sold six properties to CNL Healthcare Properties for $59.5M, which is $327 a SF. Three of the six properties were John C. Lincoln Medical Plaza I, John C. Lincoln Medical Plaza II and the North Mountain Medical Plaza with a combined total of 73,666 SF and are well-leased to multiple tenants, including John C. Lincoln/Scottsdale Health. The John J. Lincoln Health Network, which occupies about 45% of the buildings, has recently formed a strategic alliance with the Scottsdale Health System.
On October 1, Tenet Healthcare completed its acquisition of Vanguard Health System, Inc. (“Vanguard”). Vanguard operates as Abrazo Health Care in Phoenix. The transaction brings Tenet back to the Phoenix market after selling its former hospital assets to Iasis Healthcare in 1999.
Senior Housing Supplement
The senior housing real estate market includes assisted living, independent living, skilled nursing and dementia/memory care facilities. In the Third Quarter 2013, there were two transactions for a total of $4.285M: Reflection Bay at 2932-2942 N. 14th Street in Phoenix sold for $3.325M, just below an 11% cap rate at $109 per SF with a tenant in place; Fiesta Village Supervisory Care at 5602 N. 7th Street sold for $960,000, which is +/-$52.00 a SF.
The former Kindred Care facility at 11250 N. 92nd Street in Scottsdale is being converted to a 42 unit memory care facility. This new project, Amber Creek Memory Care, is expected to be completed at the end of 2014.
Scottsdale, AZ – TL Holdings purchased Suite 140 at Offices at McDowell Mountain (1,547 SF) for $185,640 at 16700 N. Thompson Peak Pkwy. Bret Isbell represented the seller.
Phoenix, AZ – Coronado Commons PHX, LLC purchased 1.37 acres (59,874 SF) for $544,000 at 325 E. Coronado. Julie A. Johnson, CCIM represented the seller.
Tonopah, AZ – 411th Avenue, LLP purchased 1.07 acres (44,229 SF) at 5910 N. 411th Ave. Kevin Helland and Nicholas A. Pelusio represented the seller.
Tempe, AZ – KHD & KAA, LLC/O’Connor & Campbell Law purchased 12,470 SF for $1,225,000 at 7995 S. Priest Dr. Dominic M. Perry, CCIM represented the purchaser.
Tempe, AZ – Dynamic Installations, Inc. leased 2,500 SF at Broadway Industrial Park, 819 W. 22nd St. Dominic M. Perry, CCIM represented the tenant.
Sun City West, AZ – Valley Estate Sale Company leased 2,506 SF at Beardsley Square, 12805 W. Beardsley Rd. Russell Fine, Bret Isbell and Julie A. Johnson, CCIM represented the landlord.
Tempe, AZ – Brady Barger leased 1,000 SF at 1730 E. Apache Trail. Kevin Helland and Nicholas A. Pelusio represented the tenant.
Scottsdale, AZ – Awesome Food, LLC leased 8,050 SF at Shops at Gainey Village, 8777 N. Scottsdale Rd. Nicholas A. Pelusio and Kevin Helland represented the tenant.
Phoenix, AZ – Arizona Foundation for Medical Care leased 581 SF at CityScape Center, 1 E. Washington St. Julie A. Johnson, CCIM represented the tenant.
Scottsdale, AZ – A Servant’s Heart Hospice, LLC leased 1,680 SF at 5111 N. Scottsdale Rd. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the tenant.
Phoenix, AZ – Mendoza Team leased 3,570 SF at Mountain Sky Financial Plaza, 4001 E. Mountain Sky Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Scottsdale, AZ – The Resource Link, Inc leased 669 SF at Camelback Tower, 6900 E. Camelback Rd. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Scottsdale, AZ – Prencipia, Inc. leased 1,651 SF at Hayden Professional Park, 3200 N. Hayden Rd. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the andlord.
Phoenix, AZ – Breen Olson & Trenton, LLP leased 1,794 SF at 24th & Campbell Office, 4425 N. 24th St. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Chandler, AZ – SatCom Global leased 1,502 SF at Palm Plaza, 3130 N. Arizona Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Phoenix, AZ – Comprehensive Property Services, LLC leased 1,308 SF at Mountain Sky Financial Plaza, 4001 E. Mountain Sky Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Glendale, AZ – Michael A. Troncellito, Jr., PLLC leased 896 SF at The Citadelle, 19420 N. 59th Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Tempe, AZ – Zero Down Solar leased 1,012 SF at 6420 E. Thomas Rd. Dominic M. Perry, CCIM represented the tenant.
Scottsdale, AZ – National Firearms Dealer Network, LLC leased 3,740 SF at 13880 N. Northsight Blvd. Tim Phillips represented the landlord.
Scottsdale, AZ – Above & Beyond Acupuncture, PLLC leased 954 SF at Plaza Cordoniz, 43000 N. Miller Rd. Linda Robbins, CCIM represented the tenant.
Tempe, AZ – Netwirks, LLC leased 1,575 SF at 4801 S. Lakeshore Dr. Trisha A. Talbot, CCIM and Kathleen M. Morgan, CCIM represented the landlord.
Tempe, AZ – Gerson Realty Management Co, Inc. leased 1,849 SF at 4801 S. Lakeshore Dr. Trisha A. Talbot, CCIM and Kathleen M. Morgan, CCIM represented the Landlord.
Chandler, AZ – Unicon, Inc. leased 1,059 SF at Palm Plaza, 3140 N. Arizona Ave. Trisha A. Talbot, CCIM and Kathleen M. Morgan, CCIM represented the landlord.
Chandler, AZ – Somi Data, LLC leased 589 SF at Palm Plaza, 3130 N. Arizona Ave. Trisha A. Talbot, CCIM and Kathleen M. Morgan, CCIM represented the landlord.
Scottsdale, AZ – Digital Dream Forge leased 914 SF at Hayden Professional Park, 3200 N. Hayden Rd. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Scottsdale, AZ – An Oral Surgeon has leased 2,588 SF at Paradise Valley Medical Plaza, 5410 N.Scottsdale Rd. Bret Isbell and Julie A. Johnson, CCIM represented the landlord.
Chandler, AZ – D. M. Benjamin, CPA leased 983 SF at Palm Plaza, 3130 N. Arizona Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Chandler, AZ – Kenmotech, LLC leased 789 SF at Palm Plaza, 3130 N. Arizona Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Tempe, AZ – Select Physical Therapy leased 2,427 SF at Tempe St. Luke’s Medical Office Building, 1492 S. Mill Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Laveen, AZ – Physician’s Group of Arizona, Inc. leased 3,572 SF at 3340 W. Southern Ave. Nicholas A. Pelusio and Kevin Helland represented the tenant.
Gilbert, AZ – Sonora Quest Laboratories, LLC leased 2,333 SF at The Medical Plaza at Spectrum, 3507 S. Mercy Rd. Nicholas A. Pelusio and Kathleen M. Morgan, CCIM represented the tenant.
Scottsdale, AZ – Scott Sadlon, DDS, PLLC leased 1,648 SF at 3301 N. Miller Rd. Jennifer Pliska and Katie Hines represented the tenant.
Tempe, AZ – Tri-City Accounts Management, Inc. leased 1,124 SF at 2000 Place, 2000 E. Southern Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Tempe, AZ – Tempe St. Luke’s Hospital, LP leased 7,550 SF at Tempe St. Luke’s Medical Office Building, 1492 S. Mill Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the landlord.
Peoria, AZ – Sonora Quest Laboratories leased 2,691 SF at Plaza Del Rio Medical Center II, 13460 N. 94th Dr. Kathleen M. Morgan, CCIM and Nicholas A. Pelusio represented the tenant.
GPE Companies reports the following transactions:
>> Scottsdale: Franklin & Dawn Boxberge (Trustees) purchased 2,730 SF for $232,500 at Vista Bonita, 8701 E. Vista Bonita Dr. Bret Isbell and Russell Fine represented the Seller.
>> Phoenix: Paramount Skyline purchased Skyline Ridge at the Preserve Condominiums for $2.2M at 1502 E. Dunlap Rd. This property consists of 14 units, 8 of which are complete with 6 lots ready to be built. Marcela Houser, CCIM represented the Seller.
>> Scottsdale: Casa Mazatlan of Tucson, LLC leased 2,870 SF at 7901 E. McDowell. Kevin Helland and Nicholas A. Pelusio represented the Landlord.
>> Peoria: Driggs Title Agency leased 1,708 SF at Plaza Del Lago, 9784 W. Yearling Rd. Linda Robbins, CCIM represented the Landlord.
>> Chandler: A Family Practice Group leased 4,549 SF at Suntech Medical/Dental Plaza, 2175 N. Alma School Rd. Trisha A. Talbot, CCIM and Kathleen M. Morgan, CCIM represented the Landlord.
>> Mesa: A Gastroenterologist leased 1,640 SF at Power Medical, 215 S. Power Rd. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the Landlord.
>> Tempe: A Surgery Center leased 5,192 SF at 2000 Place Medical Plaza, 2000 E. Southern Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the Landlord.
>> Chandler: A Chiropractor leased 2,203 SF at Palm Plaza, 3120 N. Arizona Ave. Kathleen M. Morgan, CCIM and Trisha A. Talbot, CCIM represented the Landlord.
GPE Companies reports the following transactions:
>> Prescott Valley: Green Arrow Partners purchased 28,440 SF for $655,000 at 9551 E. Lorna Lane. Bret Isbell and Russell Fine represented the seller.
>> Mesa: L&T Freeman Rosemont purchased 19,200 SF for $850,000 at 1909 N. Rosemont Dr. for private label snacks and confections production. Bret Isbell and Russell Fine represented the seller.
>> Sun City West: CEC Properties purchased 1,348 SF at Camino Medical, 13629 W. Camino Del Sol. Nicholas A. Pelusio represented the seller.
>> Phoenix: A medical imaging group leased 5,095 SF at Foothills Health Center, 4530 E. Ray Rd. Nicholas A. Pelusio represented the landlord.
>> Scottsdale: A marketing and PR company leased 3,448 SF at Camelback Tower, 6900 E. Camelback Rd. Kathleen M. Morgan, CCIM, and Trisha A. Talbot, CCIM, represented the landlord.
>> Scottsdale: A recording studio leased 3,377 SF at Camelback Tower, 6900 E. Camelback Rd. Trisha A. Talbot, CCIM, and Kathleen M. Morgan, CCIM, represented the landlord.
>> Mesa: Early Childhood Health & Development Board leased 2,609 SF at Alma School Corporate Center III, 1839 S. Alma School Rd. Kathleen M. Morgan, CCIM, and Nicholas A. Pelusio represented the landlord.
>> Chandler: A property management company leased 2,368 SF at Palm Plaza, 3120 – 3160 N. Arizona Ave. Trisha A. Talbot, CCIM, and Kathleen M. Morgan, CCIM, represented the landlord.
>> Tempe: An utility consulting company leased 2,202 SF at 4801 S. Lakeshore Dr. Trisha A. Talbot, CCIM, and Kathleen M. Morgan, CCIM, represented the landlord.
>> Mesa: A career placement firm leased 1,385 SF at Alma School Corporate Center III, 1839 S. Alma School Rd. Kathleen M. Morgan, CCIM, and Nicholas A. Pelusio represented the landlord.
>> Mesa: A facility management company leased 1,138 SF at Alma School Corporate Center III, 1839 S. Alma School Rd. Kathleen M. Morgan, CCIM, and Nicholas A. Pelusio represented the landlord.
>> Chandler: A music school expanded and leased an additional 206 SF at Palm Plaza, 3120-3160 N. Arizona Ave. Trisha A. Talbot, CCIM, and Kathleen M. Morgan, CCIM, represented the landlord.
The GPE Healthcare Investment Group successfully closed deals totaling approximately $70M in 2012, absorbing nearly 1.2 MSF.
The team consists of veteran brokers Trisha A. Talbot, CCIM; Kathleen M. Morgan, CCIM; and Julie A. Johnson, CCIM. Together they have more than 50 years of combined brokerage experience specializing in sales and leasing of healthcare and medical office properties.
“We attribute our success to the faith our clients have in us when making their healthcare real estate decisions. We provide them with honest feedback regarding market conditions and creatively negotiate solutions,” Talbot said.
“When we are representing our clients, we consider what we would do if it was our property or decision. We have the best interests of our clients in mind and negotiate the best deal for them in the market,” Morgan added.
“Together we are able to see many deals in the healthcare real estate market and strategically advise our clients about opportunities,” Johnson said. “In 2013, we are looking at more deals with owners and operators of assisted living centers, skilled nursing facilities and the like. We see a trend in this direction that will follow the baby boomer population for years to come.”
GPE is celebrating its 40th anniversary this year.
GPE Management Services named Greg Leverton as the newest member of the property management team.
As Senior Property Manager, Leverton will primarily be in charge of Camelback Tower, a Class A, 10-story building that resides next door to Scottsdale Fashion Square and includes tenants such as Seersucker Restaurant and Alliance Healthcare.
Before coming to GPE, Leverton owned and managed ACME Builders and Contractors, Inc.. With his experience in commercial construction management and his knowledge of commercial property management he was able to increase sales of this construction company by 300%.
Leverton has also worked with KNLB/NAI (an NAI affiliate in Baltimore) and Colliers International in the Baltimore/Washington market where as a Senior Asset/Property Manager he managed more than 1 MSF of office, retail and industrial properties. Some of his assignments included portfolios for Mass Mutual, Aetna Insurance, Sun Life of Canada, G.E. Capital and many others.
He is involved in many organizations such as NAIOP, IREM, Phoenix Chamber of Commerce, CRENAB, more than 25 years with BOMA, and the Special Olympics, just to name a few.
GPE Commercial Advisors represented McShane Development Company in acquiring 8.8 acres of land at the NEC of S. Val Vista Dr. and S. Market St. in Gilbert.
The U.S. Department of Veterans Affairs (VA) has selected Illinois-based McShane Development Company for the development of its new 60,000 SF, LEED-Silver Veterans Affairs Outpatient Clinic at this location.
Located within the Main Street Commons mixed-use project in Gilbert, the site is situated just one-half mile from the San Tan Freeway and is also served by public transportation. Its adjacency to abundant restaurant, retail and entertainment venues situated within Santan Village provides added conveniences to patients and staff.
“We are thrilled to assist McShane Development Company with the acquisition of this ideally located parcel, which upon completion of construction, will serve the healthcare needs of our military veterans in a modern, efficient building with numerous nearby amenities” says, Bret Isbell, Senior Vice President at GPE.
Julie A. Johnson, CCIM, Executive Vice President, Bret Isbell, Senior Vice President and Russell Fine, Senior Associate of GPE collectively worked with McShane Development Company on this acquisition. NAI Horizon represented the seller, Park Corporation.
GPE’s recent commercial transactions:
>> Scottsdale: Southwest Jet Center, LLC purchased 98,821 SF for $9.6M at Southwest Jet Corporate Center, 14988 & 15010 N. 78th Way. Tim Phillips represented the seller.
>> Phoenix: Phoenix United Properties, LLP purchased 15,150 SF for $430,000 at 1502 W. Broadway R. Bret Isbell and Russell Fine represented the seller.
>> Tempe: DA FA Realty & Lending LLC purchased 4,652 SF for $361,500 at 1858 E. Southern Ave. Nicholas A. Pelusio and Kevin Helland, MBA, represented the seller.
>> Phoenix: The Harty Family Living Trust purchased 1,578 SF for $102,570 at Garden Lakes Professional Plaza, 4140 N. 108th Ave. Bret Isbell and Russell Fine represented the seller.
>> Phoenix: Pinion Properties, LLC purchased 1,452 SF for $142,500 at Deer Valley Professional Offices, 22849 N. 19th Ave. Bret Isbell and Russell Fine represented the seller.
>> Apache Junction: Stagecoach Trails, LLC purchased 14 acres of land for $550,000 at the SEC N. Main Dr. and W. Roundup St. Bret Isbell and Russell Fine represented the seller.
>> Gilbert: McShane Development purchased 9 acres of land at Market St. & Val Vista R. Bret Isbell, Julie A. Johnson, CCIM, and Russell Fine represented the buyer. NAI Horizon represented the seller.
>> Phoenix: Laprade Real Estate Holdings purchased 6,292 SF for $450,000 at 9200 N. Central Ave. Dominic M. Perry, CCIM, represented the buyer.
>> Phoenix: A brain and spine center leased 3,386 SF at North Mountain IMS, 9250 N. 3rd St. Julie A. Johnson, CCIM, represented the tenant.
>> Phoenix: A primary eyecare practice leased 3,146 SF at Metro Medical Plaza, 3201 W. Peoria Ave. Bret Isbell and Russell Fine represented the landlord and Julie A. Johnson, CCIM, represented the tenant.
>> Phoenix: A laboratory leased 2,990 SF at Westridge Professional Plaza, 2330 N. 75th Ave. Kathleen M. Morgan, CCIM, and Nicholas A. Pelusio represented the tenant.
>> Phoenix: A physical therapy and rehabilitation center renewed their lease of 2,886 SF at Arcadia Medical Plaza, 4840 E. Indian School Rd. Julie A. Johnson, CCIM, represented the landlord.
>> Mesa: A primary eyecare practice leased 2,820 SF at Red Mountain Professional Plaza, 6335 E. Main St. & 6343 E. Main St. Tracey Galligan represented the landlord and Julie A. Johnson, CCIM, represented the tenant.
>> Glendale: A laboratory leased 2,715 SF at Canyon Springs Medical Plaza, 2940 E. Banner Gateway Dr. Nicholas A. Pelusio represented the landlord and Kathleen M. Morgan, CCIM, represented the tenant.
>> Globe:- A physicians group leased 2,593 SF at Cobre Valley Medical Center, 5860 S. Hospital Dr. Nicholas A. Pelusio and Kevin Helland, MBA, represented the tenant.
>> Phoenix: A cardiology group leased 2,519 SF at Deer Valley Office & Medical Center, 20414 N. 27th Ave. Nicholas A. Pelusio represented the tenant.
>> Phoenix: A joint and orthopedic surgery practice leased 2,345 SF at Lincoln Medical Plaza I, 9225 N. 3rd St. Bret Isbell, Julie A. Johnson, CCIM, and Russell Fine represented the landlord.
>> Scottsdale: A holistic dental practice leased 2,115 SF at Scottsdale Place, 5705 N. Scottsdale Rd. Julie A. Johnson, CCIM, represented the tenant.
>> Phoenix: A dental practice leased 2,095 SF at Foothills Health Center, 4530 E. Ray Rd. Nicholas A. Pelusio represented the landlord.
>> Scottsdale: A digestive health specialists group leased 1,650 SF at Sante Fe Medical Plaza, 9755 N. 90th St. Julie A. Johnson, CCIM, represented the tenant.
>> Phoenix: A dermatology practice leased 795 SF at Lincoln Medical Plaza II, 9327 N. 3rd St. Bret Isbell, Julie A. Johnson, CCIM, and Russell Fine represented the landlord.
>> Glendale: An oncology physician network and referral group leased 4,706 SF at Arrowhead Orchards Medical Plaza, 6320 W. Union Hills Dr. Julie A. Johnson, CCIM, Bret Isbell and Russell Fine represented the landlord.
>> Gilbert: An Internet marketing and creative services firm leased 3,851 SF at 1420 N. Greenfield Rd. Kathleen M. Morgan, CCIM, and Trisha A. Talbot, CCIM, represented the landlord.
>> Scottsdale: A specialty swimwear company leased 2,125 SF at 7720 E. Redfield Rd. Tim Phillips, Trisha A. Talbot, CCIM, and Kathleen M. Morgan, CCIM, represented the tenant.
>> Scottsdale: An IT consultant group leased 1,651 SF at Hayden Professional Park, 3200 N. Hayden Rd. Kathleen M. Morgan, CCIM, and Trisha A. Talbot, CCIM, represented the landlord.
>> Mesa: A dental internet marketing service leased 1,378 SF at Alma School Corporate Center III, 1839 S. Alma School Rd. Kathleen M. Morgan, CCIM, and Nicholas A. Pelusio represented the landlord.
>> Chandler: A financial services group leased 819 SF at Palm Plaza, 3130 N. Arizona Ave. Trisha A. Talbot, CCIM, and Kathleen M. Morgan, CCIM, represented the landlord.
>> Scottsdale: A marketing and data flow applications company leased 817 SF at Camelback Tower, 6900 E. Camelback Rd. Kathleen M. Morgan, CCIM, and Trisha A. Talbot, CCIM, represented the landlord.
>> Glendale:- A software company specializing in photo printing from smart phones leased 663 SF at Citadelle, 19420 N. 59th Ave. Trisha A. Talbot, CCIM, and Kathleen M. Morgan, CCIM, represented the landlord.
>> Sun City West: A mortgage company leased 571 SF at Sun City West Professional Building, 13540 W. Camino Del Sol. Russell Fine, Bret Isbell and Julie A. Johnson, CCIM, represented the landlord.
>> Sun City West: A rubber stamp supply company leased 933 SF at Meeker Medical Center, 13925 W. Meeker Blvd. Russell Fine, Bret Isbell and Julie A. Johnson, CCIM, represented the landlord.
GPE Commercial Advisors secured the sale of a 98,930 SF, 5.1-acre property that consists of two buildings, 14988 & 15010 N. 78th Way in the Scottsdale Airpark.
Southwest Jet Corporate Center sold for $9.6M.
“The Southwest Jet Corporate Center is a very unique property,” said Tim Phillips, Associate Vice President of GPE. “There are few properties that are almost 100,000 SF that are a mix of airplane hangar and office in The Scottsdale Airpark.
“We had a tremendous amount of interest from buyers all around the country from investors to owner-users. ”
Tim Phillips of GPE Commercial Advisors represented the seller, Southwest Jet Corporate Center, LLC. Jay LaRue of LaRue Business Group represented the buyer, Southwest Jet Center, LLC.
GPE Companies reports the following transactions:
>> Emad Investment, LLC purchased 6,759 SF for $231,000 at 718 W. Southern Ave., Phoenix. Bret Isbell and Russell Fine represented the seller.
>> Caretakers Building Maintenance leased 14,700 SF at 3620 E. Roeser Rd. Tim Phillips represented the tenant.
>> A law firm leased 3,550 SF at 5050 N. 40th St. Dave Sampson represented the tenant.
>> An urgent care center leased 3,021 SF at 333 W. Thomas Rd. Bret Isbell, Julie A. Johnson, CCIM, Julie A. Johnson, CCIM, and Russell Fine represented the tenant.
>> A laboratory leased 2,700 SF at Shalimar Square (above photo), 1950 E. Southern Ave., Tempe. Kevin Helland, MBA, and Nicholas A. Pelusio represented the landlord.
>> A rehabilitation practice leased 2,100 SF at Albertsons Center, 14545 W. Grand Ave., Surprise. Paul Vanderveen represented the tenant.
>> A medical practice leased 1,298 SF at Arizona Medical Plaza, 1728 W. Glendale Ave., Phoenix. Bret Isbell and Russell Fine represented the landlord.