TUCSON, AZ (January 17, 2024) – Newmark announced the joint venture equity placement to acquire a four-property medical outpatient portfolio in Tucson from Healthcare Trust of America for $43.23 million ($201 PSF). Newmark was engaged by Dallas-based Altera Fund Advisors, which acquired the portfolio through a newly formed joint venture with Austin-based Virtus Real Estate Capital.

Newmark arranged the equity placement and advised Altera on the joint venture formation. Acquisition financing was provided by Capital One, N.A.

Senior Managing Director John Nero, Executive Managing Director Ben Appel, and Senior Managing Directors Jay Miele and Michael Greeley of Newmark’s Healthcare Capital Markets group, in cooperation with Vice Chairman and Divisional Head of International Capital Markets Alex Foshay and local licensees, represented Altera in the transaction. Newmark Associates Ron Ott, Conor Hilton, and Chad Prescher provided financial analysis on the transaction.

“Altera’s proven track record of owning and operating value-added medical outpatient facilities across the country has distinguished the platform as a leader in the sector,” said Nero. “We are excited about the new partnership between Altera and Virtus and are confident the venture will realize success in the Tucson portfolio investment.”

The portfolio’s four assets are each strategically situated on or adjacent to leading hospital campuses in the Tucson market. The portfolio totals 215,571 rentable square feet in aggregate and was approximately 73 percent leased at closing.

The tenant roster includes ATI Physical Therapy, Community Medical Services, Labcorp, and Tucson Orthopedic Institute.

The properties are all part of or adjacent to hospital campuses, as follows:

• Desert Life Medical Plaza, located at 2001 W. Orange Grove Road, adjacent to Northwest Medical Center, sold for $5.2 million and closed on December 29, 2023.
• La Cholla Medical Center, located at 6261 N. La Cholla Blvd., near the Northwest Medical Center, sold for $11.25 million and closed on December 29, 2023.
• Gateway Medical Plaza, located at 6320 N. La Cholla Blvd., on the Northwest Medical Center campus, sold for $23.43 million and closed on January 2, 2024.
• Academy Medical Center, located at 310 N. Wilmot Road, situated on the St. Joseph’s Hospital Campus, sold for $3.35 million and closed on December 29, 2023.

This is not Virtus Real Estate Capital’s first medical office acquisition in Arizona. The company purchased in April Banner Health Center Plus, a 70,000-square-foot property built in 2021 in Phoenix, for $48.5 million.

To learn more, see RED Comps #11073, #11074, #11098, and #11099.

ORO VALLEY, AZ (January 12, 2024) — Ventana Medical Systems, Inc., owned by Roche Tissue Diagnostics, purchased the Pharmaceutical R&D Facility at 2090 E Innovation Park Dr. for $25 million ($222 PSF). The 112,500-square-foot facility on 11.54 acres was previously Icagen’s ultra-high-throughput biology, screening, and chemistry research facility after Icagen bought Sanofi in 2016.

Roche Holding AG merged with Ventana Medical Systems in 2008 and is located adjacent to the former Icagen building, which has been vacant since 2020. Ventana purchased to occupy for expansion.

The total project cost for building construction, including acquisition, construction, and improvement, totaled over $90 million, or $803 PSF. Given today‘s construction costs and the required time to replicate the facility in today’s market, it could arguably take 3-4 years to construct and cost well over $1,000 per square foot for the building alone.

The two-story building and a basement were constructed as a drug discovery research lab with 78,981 square feet of laboratory and 12,550 square feet of office space. The atrium, conference, and support areas on all three levels total 20,969 square feet. The power is 13,800 AMP, 480 volts, with a 1,500 kW generator and base fuel tank serving critical loads. VAV, 100% single pass air, with two 600-ton Chill Paks. The building is LEED Gold Certified with solar-heated water, laboratory air heat exchangers, and office area convection temperature control.

Ventana Medical, today known as Roche Tissue Diagnostics, has revolutionized cancer diagnostics worldwide through state-of-the-art testing automation. It provides more than 250 cancer tests and associated instruments, making it the leading global supplier of cancer diagnostic systems to the pathology market. They also improve patient care through tests determining which patients are most likely to benefit from specific therapies. Companion diagnostics link the most accurate diagnosis with the most targets and relevant therapeutic available for each patient.

The transaction closed on December 15, 2023.

To learn more, see RED Comp #11035.

TUCSON, Ariz., (Jan. 11, 2024) – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced the sale of The Place at Spanish Trail, a 256-unit multifamily asset in Tucson, Arizona that sold for $33 million ($129,000 per unit).

The transaction closed on December 20, 2023.

“Tucson’s population growth is expected to continue over the next five years, which should sustain the city’s historically high multifamily rent and occupancy rates,” said Clint Wadlund, IPA senior director. “The prior owners of The Place at Spanish Trail completed significant interior, exterior, and common area renovations, giving the buyer opportunity to further enhance value by renovating the remaining classic unit interiors and selectively enhancing community amenities,” said Hamid Panahi, IPA senior vice president. Wadlund, Panahi, and IPA’s Steve Gebing and Cliff David represented the seller and procured the buyer.

The property is near Broadway Boulevard, Tucson’s major east/west thoroughfare. Retail and dining are nearby at the Old Spanish Trail Crossing and Old Spanish Trail Marketplace shopping centers, and The Loop Recreational Trail is close by. Among the 2,000 employers within a five-mile radius are St. Joseph’s Carondelet Hospital, Davis-Monthan Air Force Base, UA Tech Park at Rita Road, Tucson Unified School District, and Northwest Medical Center Houghton.

Completed in 1979, upgrades to the majority of The Place at Spanish Trail’s one- and two-bedroom units include white Shaker-style cabinet fronts, new appliances, wood-plank laminate flooring, and new electrical and plumbing fixtures. The community-wide improvements include custom-built barbecue areas, a renovated clubhouse with a full kitchen and coffee station, a renovated fitness area, Amazon package lockers, a new pool fence and furniture, and an entry gate.

To learn more, see RED Comp #11046.