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.