Bolstered by a booming medical office market, strong demographics and an institutional-quality asset, two Wisconsin-based real estate firms have traded hands on a Gilbert, Arizona medical office building called Spectrum Medical Commons. The $17.75 million deal represents a substantial $409.41 per-square-foot.
JLL Executive Vice President Brian Ackerman facilitated the transaction. Hammes Partners, a private equity platform focused exclusively on the U.S. healthcare real estate market, purchased the asset from Irgens, a commercial real estate development firm.
“As an expert in the healthcare real estate sector, Hammes recognized the advantages that make Spectrum Medical Commons an attractive investment,” said Ackerman. “The building has stable tenancy anchored by multiple long-term leases, in a location with strong demographics, adjacency to a major hospital and medical submarket and nearby amenities.”
Located at 3367 S. Mercy Road, Spectrum Medical Commons totals 43,355 square feet of Class A medical office space situated adjacent to Mercy Gilbert Medical Center and multiple nearby medical office parks. The building features a modern surgery center with prominent building signage and near-immediate access to a full interchange at Val Vista Drive and the Loop 202 freeway. It is minutes from San Tan Village Mall, Main Street Commons and other major shopping and retail centers.
According to JLL, demand for metro Phoenix medical office space has driven vacancy rates down by 33 percent since 2010. And while the Southeast Valley – including Gilbert – is experiencing the greatest amount of new medical office construction, currently at more than 300,000 square feet, it is also among the most attractive for rental rates and in high demand from a growing population.
“We see that demand only continuing to rise,” said Ackerman, “which bodes well for the future of this new asset.”