Avison Young, the world’s fastest-growing commercial real estate services firm,announced today that it has brokered the $12.1-million sale of Foothills Health Center, a two-building, 53,310-square-foot (sf) medical office property within the Ahwatukee submarket of Phoenix.
Avison Young’s Nicholas Pelusio and Kevin Helland, a senior vice-president and senior associate, respectively, in the company’s Phoenix office, represented the seller, United Insurance Company of America. The buyer, Crescendo Development, was represented by Newmark Grubb Knight Frank. NKF’s Managing Directors Kathleen Morgan, CCIM and Trisha Talbot, CCIM of the NKF Phoenix office represented the buyer in the transaction, an affiliate of Woodside Health.
“Our Avison Young team has held the leasing assignment for Foothills Heath Center for the past 16 years and United Insurance Company has owned the asset for the past 15 years,” comments Pelusio. “Together, we have worked to successfully position and maximize value on this institutional-quality asset in a high-barrier-to-entry location. The buyer saw the intrinsic value in this property and plans to hold it long-term for cash-flow.”
Located at 4510 and 4530 E. Ray Road and situated on 8.35 acres, the single-story buildings total 45,130 sf and 8,180 sf, respectively, and are 93 percent occupied. The larger building was developed in 1994 and was refurbished in 2000 and is occupied by several healthcare tenants. The smaller building was developed in 2002 as a build-to-suit for its current tenant, Triple R Childcare.
“We are pleased with the sale of the Foothills Health Center,” says Daniel Gaichas, Real Estate Division Portfolio Manager with United Insurance Company of America. “We were able to take advantage of a strong investment market while simultaneously reducing our overall real estate exposure as a firm. Nicholas Pelusio and Kevin Helland of Avison Young represented us well in not only leasing the property, but also in the disposition of this core asset.”
Foothills Health Center is situated at the foothills of South Mountain within the Ahwatukee submarket, which comprises many upscale residences and some of the best public schools in the Phoenix market. The center also enjoys proximity to Interstate 10 and Loop 202, which provide quick access to the booming southeast markets of Gilbert, Chandler and Tempe. Hospitals in the region include Tempe St. Luke’s, Chandler Regional and Banner Desert.