Cushman & Wakefield announced today a 39,305-square-foot portfolio consisting of three medical office buildings in the cities of Chandler and Gilbert, Arizona has sold for $16,100,000 ($410 PSF). The buyer was Global Medical REIT of Bethesda, Maryland. Cushman & Wakefield represented the anchor tenant and seller in the transaction, a local gastroenterology practice that will continue to operate out of the properties under a long-term sale/leaseback arrangement. The portfolio also included two endoscopy centers, one of which is owned and operated by a joint venture between local physicians, Dignity Health and national surgery center operator United Surgical Partners Inc (USPI).
Devpal Gupta and Peter Menna of Cushman & Wakefield’s Phoenix office collaborated with Travis Ives of the firm’s national Healthcare Capital Markets Team to represent the seller on the assignment. This marked the trio’s second medical office sale in the region, now with over 185,000 sf sold in the Phoenix MSA in less than six months. Gupta stated, “We have had a long-standing relationship with the medical community in Metro Phoenix and our relationship with the seller goes back a long way. As a premier GI practice, the seller is looking to grow its core business and exiting their real estate allowed them to focus on their continued growth plans.”
Ives commented that, “Growing demand from healthcare providers for new and expanded medical office space has translated into strong leasing fundamentals across most markets. This is especially true in strong growth markets such as Phoenix. This trend has fueled investor appetite for medical office investment opportunities with far more capital chasing deals than the market can supply. The demand for quality medical office investments such as these is at all-time highs. This has allowed us to maximize value for our physician group and investor clients that seek to monetize their real estate holdings at an opportune time.”
According to Cushman & Wakefield’s Vital Signs: Healthcare Investor and Developer Survey report in November, driven by an aging American population and improving technology, the healthcare sector continues to grow even more rapidly than the overall economy, and medical office developers and investors are aggressively working to meet the subsequent demand.