Cushman & Wakefield announced the firm has arranged the sale of Scottsdale Centre, a 163,311-square-foot medical outpatient building in Scottsdale, Arizona. Located at 7373 N Scottsdale Blvd along the iconic Scottsdale Road Corridor, the property is well positioned near three major hospital campuses in northeastern Metro Phoenix. At the close of sale, Scottsdale Centre was 78% leased, of which 66% was medical and 34% was office tenancy—the tenancy consists of a diverse mix of synergistic medical specialties including oncology, cardiology, ophthalmology and primary care.
An Arizona based commercial real estate investment company acquired the healthcare asset for $44.58 million, representing the upleg of its 1031 Exchange.
The seller was MIG Real Estate (“MIG”), a privately held real estate investment and development firm headquartered in Newport Beach, California. The seller was represented in the transaction by Travis Ives, Gino Lollio and Tyler Morss of Cushman & Wakefield’s U.S. Healthcare Capital Markets Team.
Cushman & Wakefield’s Sheila Bale, Erika Eckblad, Tom Weinhold, Tim Whittemore, and Patrick Schrimsher provided local market leasing advisory on the sale and have been retained by the buyer to continue handling leasing for Scottsdale Centre moving forward. During MIG’s ownership, the C&W leasing team was instrumental in helping to identify the opportunity to convert the property from office to medical, implementing and executing on that plan from 2022-2024. The conversion substantially improved occupancy and increased NOI preparing the property for disposition.
Travis Ives, Executive Director, said, “Scottsdale Centre is a prime example of what a successful office-to-medical conversion looks like. The property’s location appealed to medical providers who wanted to be proximate to an affluent patient base with high visibility along the coveted Scottsdale Road Corridor. The limited inventory of competing buildings allowed MIG and the C&W leasing team to execute the repositioning strategy in just a few short years, transforming the rent roll while improving occupancy and WALT. Our sale campaign garnered interest from a variety of investor profiles from national healthcare real estate investment firms to local family offices.”
Originally constructed in 1984 and recently upgraded and converted from office to primary medical post-pandemic, Scottsdale Centre is a two-story building situated on ±8.70 acres. The building features an ample 4.4/1000 parking ratio, with 254 surface parking spaces and 466 subterranean parking spaces, for a total of 720 parking spaces. Anchor tenants include Palo Verde Cancer Specialists, Prosano Health and various other healthcare providers.
