Two Tucson Medical Buildings Included in $85.5 Million Portfolio Sale

TUCSON, AZ (Match 28, 2024) — Sila Realty Trust, Inc. is a net lease real estate investment trust headquartered in Tampa, Florida, with a strategic focus on investing in the significant, growing, and resilient healthcare sector of the U.S. economy. It recently acquired five Class A healthcare facilities in Arizona and Texas for a contract purchase price of $85.5 million ($541 PSF).

The Portfolio comprises four built-to-suit micro-hospitals and one freestanding emergency department, totaling approximately 158,000 square feet on a combined 17.5 acres. Each of the micro-hospitals is licensed for 8 inpatient beds and offers a 13-bed emergency department, operating room, laboratory, diagnostic imaging suite, and pharmacy. The freestanding emergency department is a 13-bed full-service emergency center constructed to offer the same services as the micro-hospitals.
The Portfolio is 100% leased by Tenet Healthcare Corporation, one of the nation’s largest healthcare systems, with over 15,000 licensed beds, which designed and developed these facilities from 2019 through 2021. Each property is operated under the name of Tenet’s local affiliated hospital brand. Two micro-hospitals are in the Phoenix-Mesa-Chandler metropolitan statistical area and operate under the brand Abrazo Health.
One micro-hospital and a freestanding emergency department are in the Tucson MSA and operate under Carondelet Health.
  • The Medical Emergency Center at 7401 South Wilmot, Tucson dba St. Rafael’s Emergency Center, sold for $15.95 million ($491.54 PSF) for the 32,450-square-foot building; and
  • the Micro-Hospital at 5620 West Cortaro Farms Road, Marana sold for $16.1 million ($532.6 PSF) for the 30,220-square-foot building.
The additional micro-hospital is in the McAllen-Edinburg-Mission, Texas MSA and operates under the brand of Valley Baptist Health. Tenet strategically chose each location because it believes each exhibits strong population density, demographics, and positive growth characteristics.
“We are pleased to announce the closing of this portfolio of properties which are emblematic of the healthcare facilities that Sila Realty Trust is focused on acquiring – high quality, well located, strong credit tenancy with healthcare system affiliations,” stated Michael A. Seton, President and Chief Executive Officer of the Company. “This acquisition demonstrates our ability to source property and invest capital in what we believe to be an accretive manner to the Company while others remain on the sidelines.”

Other Tucson properties owned by Sila Realty Trust include:

  • 2121 N Craycroft purchased 12/27/2019
  • 2300 S Houghton, purchased in 12/22/2020
  • 2025 W Orange Grove purchased in 12/26/2019
  • 6080 N La Cholla Blvd. purchased in 9/19/2019

Sila Realty Trust, Inc. is a net lease real estate investment trust headquartered in Tampa, Florida, with a strategic focus on investing in the U.S. economy’s significant, growing, and resilient healthcare sector. The Company invests in high-quality healthcare facilities along the continuum of care, which, we believe, generate predictable, durable, and growing income streams. Our portfolio comprises high-quality tenants in geographically diverse facilities positioned to capitalize on the dynamic healthcare delivery to patients. As of December 31, 2023, the Company owned 131 real estate properties and two undeveloped land parcels in 62 markets across the U.S.




Investors have “Pencils Up” for Tucson Multifamily Market

Alamo Apartments, 824 E 10th St, Tucson

TUCSON, AZ (March 27, 2024) — Allan Mendelsberg and Joey Martinez, Principals and Multifamily Specialists with Cushman & Wakefield | PICOR, represented the parties in multifamily transactions totaling $15 million.

Mendelsberg and Martinez wrote in their Marketbeat Report: “In 2024, Tucson’s MSA is set to harden its status as a robust market, sustained by limited inventory and rising demand. The evolving lending landscape, characterized by progressively lower interest rates, is expected to provide increased activity, countering the slowdown experienced in 2023. We expect investors sidelined in 2023 to be “Pencils Up” this year and actively pursuing opportunities in the Tucson market. The institutional-sized properties are expected to remain slow on a volume basis as the market adapts to adjusted cap rates and valuations. Discussions surrounding the 2024 presidential election are expected to enter real estate conversations, introducing an additional layer of unknown to the market’s evolving landscape.”

Those predictions appear to be coming to fruition, with Multifamily fundamentals doing great in Tucson!

As reported last month, The Wasko Modern Apartments sold for $6.07 million ($159,737 per unit) for 38 units, and the Riverside Suites with 33 units sold for $5.15 million ($156,064 per unit).

On March 14th, The Twenty Lofts on Tenth, LLC purchased the Alamo Apartments, a 11,189-square-foot investment property at 824 E. 10th St. in Tucson. The 20-unit property was purchased from Euclid 35 LLC for $2 million ($100,000 per unit).

The property is in the Central Tucson submarket, with studios and one-bedroom units near the UA Campus. Amenities include laundry facilities, laundry service, courtyard, grill, picnic area, and bicycle storage. Unit amenities are air conditioning, heating, ceiling fans, tub & shower, dishwasher, stainless steel appliances, vinyl flooring, and window coverings.

On March 6th, Mosaic LLC purchased Zona Apartments, an 18,733-square-foot investment property at 305-315 N. Highland Ave. in Tucson. The 7-unit apartment property was purchased from the 2017 Gutierrez Family Trust for $950,000 ($135,714 per unit). Built in 1949, the property is located in the Central Tucson submarket it is also student housing near the UA Campus in the Rincon Heights neighborhood.

Then, in a more recent transaction, on March 25th, Stone Casitas, with 7 units and a commercial warehouse at 10 West Rillito and 2201 N Stone Avenue, sold for $820,000 ($102,500 per unit). The property was a value-add opportunity with below-market rates and sold with ten offers during a 2-week marketing process.

For more information, Mendelsberg should be reached at 520.546.2721, and Martinez is at 520.546.2730.

To learn more, see RED Comps #11190 and #11176.

 




Broadway Multi-Tenant Office Sells for $2.5 Million for Residential/Retail Redevelopment  

TUCSON, AZ (March 26, 2024) – The two-story, multi-tenant office building at 2030 E Broadway Blvd. sold for redevelopment at $2.499 million ($103 PSF). It is located southeast of Campbell Avene and Broadway Blvd. at the southwest hard corner of Olsen Ave and Broadway.

The buyer, an affiliate of Central Barrio Development, Hector Jimenez, manager reported that the property was purchased to reposition for a mixed residential/retail use and estimates approximately 20 residential units to be developed.

Built in 1948, the property is fully solar-powered by roof panels and consists of two buildings with 24,358 square feet, a courtyard, and 60 parking spaces.

The seller was 2030 Broadway Capital Partners, LLP, Benjamin Riehle, manager, who was represented in the transaction by Chris Itule of DSW Commercial Real Estate in Tucson. The buyer was self-represented.

For more information, Itule should be reached at 520.548.4321.

To learn more, see RED Comp #11144.