Cushman & Wakefield announced the sale of Palo Verde Behavioral Health Center, an 84,029-square-foot inpatient behavioral health facility located at 2695 North Craycroft Road in Tucson, Arizona. The property was acquired for $19.065 million by Universal Health Services (NYSE: UHS). Cushman & Wakefield’s Healthcare Capital Markets Team together with the firm’s Tucson Alliance affiliate PICOR Commercial Real Estate Services arranged the sale.
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Prior to acquiring the property, UHS had been leasing the majority of the facility as its anchor occupant. UHS will continue to operate an 84-bed acute psychiatric hospital as well as provide outpatient behavioral health services at this location. The project also features two other healthcare-oriented tenants.
The seller was Tucson Medical Center (TMC), which was represented by Travis Ives, Gino Lollio, Tyler Morss of Cushman & Wakefield’s U.S. Healthcare Capital Markets Team in collaboration with Rick Kleiner of Cushman & Wakefield | PICOR in Tucson.
Travis Ives, Executive Director, said, “We’ve seen a significant increase in the number buyers seeking behavioral health opportunities. Palo Verde Behavioral Health Center represented an attractive investment opportunity with predictable cash flow at a very reasonable basis. Our team was successful in procuring multiple offers for the property from a variety of buyer profiles. Ultimately, UHS made the most sense as the buyer selected given their long history as an anchor tenant and strong relationship with the seller.”
Situated on nearly ±8 acres, the Palo Verde Behavioral Health Center is strategically located on the campus of Tucson Medical Center (TMC), a 641-bed hospital that has served the Tucson region for more than 80 years. The location is also adjacent to the future site of the Center for Neurosciences that is planned for development. Palo Verde Behavioral Health Center was originally built in 1985 but has undergone a series of upgrades over the years including the addition of a new south wing in 2015.
