JLL Capital Markets announced today that it arranged the $13.5 million sale and the $10.1 million acquisition financing for a mission-critical, on-campus medical property, Thunderbird Medical Pavilion, totalling 92,811 square feet. The property is located at 5757 Thunderbird Rd., Glendale, Arizona.
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JLL represented the seller, Banner Health, and procured the buyer, UDLR Healthcare. JLL also represented the buyer and borrower, UDLR Healthcare, in obtaining acquisition financing.
Thunderbird Medical Pavilion hosts a diverse set of clinical users including imaging, cardiovascular surgery specialists, general surgery specialists, ear nose and throat physicians, and obstetrics/gynecology. Banner Health is the largest tenant in the building and is accompanied by other dominant, local physician groups. The property is 50 percent leased with 7.3 years of remaining lease term. New ownership has devised a strong business plan to attract new tenants to the property to support the growth of healthcare services offered on the medical campus.
Thunderbird Medical Pavilion is the only medical office building that is investor-owned on the campus of the 595-bed Banner Thunderbird Medical Center. Banner Thunderbird is one of Banner’s largest and most profitable hospitals in the Phoenix area and is the dominant inpatient provider in a 10-mile radius.
The JLL Medical Properties Group Investment Advisory Sales team was led by Senior Managing Director Mindy Berman, Executive Managing Director Pat Williams, Director Matt DiCesare and Associate Liam Sorensen. JLL Medical Properties Group Debt Advisory team was led by Senior Managing Directors John Chun, Directors Anthony Sardo and Daniel Digerness and Associate Liam Sorensen.
“Thunderbird Medical Pavilion is a unique on-campus investment opportunity for discriminating owners of medical properties,” said Berman. “The property’s close association with Thunderbird Medical Center in a prime Phoenix location will allow for an aligned strategic partnership between the new landlord and Banner in the quest to build on existing services at the campus and increase occupancy in the building.”
“The growth in patient demand for healthcare services at this campus is high,” said Troy Freeman, VP of Real Estate at Banner Health. “UDLR’s business plan will help advance this prime real estate to the next level, further supporting the mission of Banner Thunderbird and surrounding clinical locations on the campus.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
