Oro Valley, AZ (April 5, 2024)—Northwest Urgent Care Center at 10568 North Oracle Road in Oro Valley sold for $5.15 million ($791 PSF) in an investment sale. The investor was an affiliate of California-based Pacific National Group, and the seller was an affiliate of Meridian Real Estate Development of Walnut Creek, CA.
The 6,844-square-foot clinic is brand new and a built-to-suit. Rent commenced in mid-July to Northwest Urgent & Primary Care Clinic. The tenant has been in business for many years and is a staple in Tucson MSA, serving the surrounding communities with its 43 locations.
Northwest Hospital is the guarantor, a non-profit health system with a minimum guarantee requirement of $250mm. The health system reported nearly $3B in revenue in 2022.
Business Insider reports that interest in Urgent Care “has grown rapidly,” primarily due to its convenience and affordability, with 500-600 expected to open in 2021. This ongoing trend provides an investor with confidence in tenant performance for the duration of the 12-year lease and beyond.
This long-term single-tenant healthcare investment features a landlord-friendly lease structure with minimal landlord responsibilities making it ideal for out-of-state investors. Healthcare operators aren’t prone to the same competition that many retail tenants face.
It is located in affluent Oro Valley, one of the wealthiest pockets in Arizona, just 3 miles north of Tucson. The 1-mile average household income in the area surrounding the property is over $132K/year, and the 5-mile average household income is over $128K/year.
Arizona has a shortage of primary care doctors, about 667 short of what is needed to service the state. With an aging population, this shortage is expected to grow to 2,000+ by 2030. The 65-and-older population has been the fastest-growing demographic in the country since 2010, increasing 34.2% nationally and 48.4% in Arizona. This means demand for primary care and medical services will only increase.
The Clinic is across from a large retail strip center with big-name brands like Target, Fry’s, Starbucks, The Home Depot, McDonald's, and Dollar Tree.
According to a recent report by WalletHub.com, Oro Valley is the best small city to live in in Arizona. They determined this using several factors, including the city’s low rate of crime, low poverty level, high level of area residents' education, and low cost of living in the city.
The broker of record was Simon Assaf with Matthews Real Estate Investment Services in Scottsdale. Assaf can be reached at 909.800.7139.
To learn more, see RED Comp #11168.