Kidder Mathews healthcare team closes pair of leases
The Phoenix Kidder Mathews healthcare team negotiated a deal that brought life back to a vacant space and closed another deal in which a medical back office was converted to a dental office at Biltmore Medical Mall, 2222 E. Highland Ave., in Phoenix.
Kidder Mathews Vice President Rachael Thompson and Senior Vice President Michael Dupuy helped secure the leases for a total consideration of $1.95 million and 7,863 SF.
The team negotiated a 7-year medical office lease worth $1.013 million for 4,811 SF and a 10-year dental office lease worth $930,575 for 3,052 SF.
“We are thrilled to have these two new tenants at Biltmore Medical Mall,” Thompson said. “The demand in this market has dramatically increased over the past 12 months and we hope to see the building close to 100 percent by the end of the year.”
The landlord is Welltower of Toledo, Ohio.
Thompson represented the landlord and Fletcher Perry, also of Kidder Mathews, represented the tenant, Dr. Patrick W. Hogan, Arizona Spine & Pain Specialists, in the medical office lease. This is the tenant’s sixth location in Arizona. The space was a former research space that sat vacant for 7 years.
Thompson also represented the landlord in the conversion of back office space to the dental office of A. William Choules, DDS, of Choules Family Dentistry & Orthodontics. Rich Andrus of Menlo Group represented the tenant.
Two medical office suites remain at Biltmore Medical Mall, both on the second floor. One totals 2,319 SF of clinical space and the other totals 5,691 SF of open space.
Current tenants include Arizona Oncology, Biltmore Surgical Center, Foothills Sports Medicine, TOCA, SMIL, and Eye Surgery Center at the Biltmore.
“This building is specifically in high demand with its immediate access to SR-51, good payer mix, excellent demographics, and two surgery centers on the first floor,” Thompson said. “Physicians who live near the Biltmore or Paradise Valley areas can have a practice in a well-appointed Class A medical building with little driving.”
The location offers easy, 10-minute access to Banner University Medical Center, Phoenix Children’s Hospital, and Abrazo Heart Hospital without having to have a practice in that market.
Phoenix Commercial Advisors closes on Gilbert Starbucks
Phoenix Commercial Advisors facilitated the sale of a single-tenant Starbucks in Gilbert, Ariz., that closed June 19. The property, located on 0.87 acres on the northeast corner of Higley and Baseline roads at 1683 N. Higley Road, sold for $2,815,220 or $1,280 per square foot. The brand-new, 2,200-square-foot building with drive-thru closed at a 4.6 percent cap rate and 99 percent of the asking price.
John Schweikert and Chad Tiedeman at Phoenix Commercial Advisors represented the seller, The Highland at Gilbert, LLC, in the transaction. The transaction is one of 13 retail investment property sales for the Phoenix Commercial Advisors’ Investment Team in 2018.
“This Starbucks is set up for success being across the street from a large Banner facility and being near the U.S. 60 on the going-to-work side of the street,” Schweikert said.
Phoenix Commercial Advisors closes on Mora Italian
Phoenix Commercial Advisors closed on Mora Italian, Wednesday, May 16. The property, located in a trophy location on the southeast corner of 7th Street and Montebello Avenue at 5651 N. 7th Street in Phoenix, sold for $4,681,000, or $780 per square foot. The 5,998-square-foot building on 0.76 acres housed Mora Italian, celebrity chef Scott Conant’s concept voted #1 Best New Restaurant in Phoenix for 2017.
Chad Tiedeman at Phoenix Commercial Advisors represented the seller, 7th Street/Montebello, LLC, in the transaction. The transaction is one of 11 retail investment property sales for the Phoenix Commercial Advisors’ Investment Team in 2018.
“This property is a winning combination of an exceptional location paired with a strong tenant. The restaurant itself and its chef are both award-winning, and it sits right in the Phoenix Golden Mile Corridor. I think it’s a solid investment opportunity, and will continue to be and grow as a community staple for delicious food,” said Chad Tiedeman.
Marcus & Millichap sells Denaro Medical Center
Marcus & Millichap, a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Denaro Medical Center, a 32,911-square foot net-leased in Peoria, AZ, according to Ryan Sarbinoff, regional manager of the firm’s Phoenix office. The asset sold for $9,700,000.
“This is the eighth medical property that this team has sold in 2018. An aging population of Baby Boomers, eight consecutive years of falling vacancies, strong financial backing and consistent rent growth continues to attract exceptional buyer demand for medical properties across the country,” says Sarbinoff.
Jamie Medress, Mark Ruble, and Alan B. Laulainen, investment specialists in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, a limited liability company.
“The Denaro Medical Center is a high-quality, stabilized asset featuring a rent roll comprised of medical tenants on net-leases, thus attracting heavy investor interest,” says Ruble.