Strong investor demand for well-occupied medical office space has spurred the sale of a state-of-the-art, build-to-suit facility in Phoenix that is fully leased to Banner Health. The sale was completed by the Phoenix office of JLL for Minneapolis-based Ryan Companies to Inland Real Estate Acquisitions LLC, on behalf of Inland-related parties.
“This sale underscores a strong and steady demand for medical net lease assets in Phoenix and across the nation, particularly when buildings are leased to industry leading tenants such as Banner Health,” said JLL Senior Vice President Tivon Moffitt, who represented Ryan Companies in the sale along with JLL Senior Managing Director Dennis Desmond and Senior Vice President Peter Bauman. “The fact that the building was constructed by a market leader like Ryan Companies only adds to its value.”
Located at 4375 E. Irma Ln. in Phoenix, the Banner Health building totals 29,350 square feet of Class A medical office space built in 2018. It is situated near the corner of Tatum Boulevard and the Loop 101, with direct visibility from the Loop 101 freeway and close proximity to State Route 51 and Interstate 17. It also sits in the desirable Desert Ridge community, featuring high-end residential neighborhoods and a mix of premier office, retail, restaurant and entertainment developments.
The medical office building provides primary and specialized care services.
“Banner Health was a tremendous addition to the Desert Ridge Community,” said John Strittmatter, Chairman, Southwest for Ryan Companies. “We were pleased to work with JLL and Inland Real Estate Acquisitions LLC on the sale of the property.”
According to JLL, the greater Phoenix medical office market decreased in the second quarter to a post-recession vacancy low of 13.6 percent.
“Our team has sold properties to Inland Real Estate Acquisitions LLC in markets across the country,” said Bauman. “We are pleased to help them continue to expand their medical office portfolio holdings at a time when demand and stability are so high.”