Medical Office Building is Adjacent to Abrazo Scottsdale Campus
PHOENIX, ARIZONA – A private equity fund has purchased 40th Street Medical Plaza, located at 16601 N. 40th St. in Phoenix. The two-story, three-building medical office development is well located adjacent to the Abrazo Scottsdale hospital 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.