Medical office building is adjacent to the Abrazo Scottsdale campus
“This asset offered outstanding upside potential for the investor,” says Mindy Korth with Colliers in Arizona. “The renovated property’s anchor tenant signed a 10-year lease with the new owner, enhancing the value of this very stable development.”
A private equity fund purchased the property from 16601 N 40th Street, LLC. Korth represented the seller in the transaction.
40th Street Medical Plaza was built in 1986 and renovated in 2015. The garden style property contains 41,703 square feet of quality medical office space. The property is 77.4 percent leased to 11 tenured specialty and primary care medical providers. One of the state’s most prominent surgical specialists, Valley Surgical Clinics, occupies approximately one-third of the development’s space.
Located within an ideal medical services hub, 40th Street Medical Plaza is just south of the intersection of 40th Street and Bell Road. Recent renovations created a modernized overall appearance both on the exterior and interior of the buildings. The submarket has a high barrier to entry from future competition and the new owner is expecting to benefit from revenue growth that will come from leasing vacant space, as well as stable tenancy of existing occupiers.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues to $3.6 billion ($4.0 billion including affiliates) and $46 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
Colliers in Arizona has served clients locally and globally for more than 40 years.