PHOENIX, ARIZONA – NAI Horizon is proud to announce it has elevated 14 brokerage professionals to new leadership roles, including promoting three industry experts to the title of Executive Managing Director.

The promotions honor and highlight each individual for their commitment and dedication to the success of the firm as the commercial real estate industry and the Arizona economy emerged from the COVID-19 pandemic.

Denise Nunez, Isy Sonabend, and Russ Warner were promoted to Executive Managing Director. Matt Harper, CCIM, Laurel Lewis, and Mark Wilcke were promoted to Managing Director. Jeff Adams was promoted to Executive Vice President.

Nunez, who has been with NAI Horizon for 7 years, leads the Nunez Self Storage Group. She possesses more than 28 years of self-storage expertise and closed more than $140 million in deals in 2021. She was also the 2021 Top Producer at NAI Horizon and finished No. 77 among NAI Global’s top 125 agents for 2021.

Sonabend, an industrial expert, was No. 111 on the NAI Global list. Sonabend was No. 2 Top Producer for NAI Horizon in 2021 with one of his most significant deals of 2021, representing Carvana in the $25 million purchase of 148 acres in Surprise, Arizona.

Warner has been with NAI Horizon for almost 9 years and runs the Manufactured Housing Group. He is focused on the disposition of self storage, RV park and mobile home park investment properties, as well as land suitable for development of these property types.

“These well-deserved promotions reflect the continued growth in experience and titles for our agents in multiple specialties,” said NAI Horizon CEO/Designated Broker Terry Martin-Denning. “These promotions run the gamut from our experienced brokers to the young professionals with whom they work and mentor.”

Wilcke, Harper, Lewis, and Adams finished Nos. 3 through 6 among NAI Horizon’s 2021 Top Producers. Wilcke is an industrial and land specialist; Harper is a retail specialist; Lewis is an office specialist; and Adams is an industrial and land specialist.

Other promotions and their specialty:

• To First Vice President: Victoria Felice, CCIM, self-storage; Kevin Higgins, office; Joan Krueger, office/retail/light industrial; and Christopher Lewis, industrial/land.
• To Vice President: Dylan Whitwer, office.
• To Associate: Drew Eisen, industrial; and Cole Neville, investment sales.

Portfolio had a mix of 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital with nine properties in Arizona; six in Tucson.

TUCSON, ARIZONA – Harrison Street Real Estate sold six medical properties in Tucson for an aggregate total of $58,488,000 to NorthWest Healthcare Properties REIT as part of a larger $600 million medical property portfolio. The Tucson sale included two micro-hospitals and four medical office buildings as follows:

• Micro-hospital at 7475 S Wilmot Road in Tucson sold for $20.22 million ($648 PSF)
• Micro-hospital at 5620 W Cortaro Farms Road in Tucson sold for $20.444 million ($676 PSF)
• Medical Office Building at 4892 N Stone Avenue in Tucson sold for $7.13 million ($371 PSF)
• Medical Office Building at 551 W Magee Road in Tucson sold for $3.45 million ($323 PSF)
• Medical Office Building at 1055 La Canada Drive in Green Valley sold for $3.88 million ($162 PSF)
• Medical Office Building at 1704 West Anklam Road in Tucson sold for $3.37 million ($248 PSF)

JLL’s Healthcare Capital Markets group announced that it closed the $600 million sale of a 27-property, best-in-class, core-quality healthcare real estate portfolio totaling 1.2 million-square-feet in Arizona, California, Colorado, Illinois, Indiana, Florida, Massachusetts, Minnesota, Oklahoma and Texas markets.

JLL marketed the portfolio on behalf of the seller, Harrison Street. NorthWest Healthcare Properties acquired the assets.

“Harrison Street is proud to have partnered once again with JLL’s Healthcare Capital Markets team to execute the sale of this complex portfolio spanning multiple medical sub-sectors and U.S. states,” said Ben Mohns, Senior Managing Director and Head of North American Asset Management at Harrison Street. “The successful sale of these diversified healthcare assets reinforces the strength of Harrison Street’s ongoing partnership with JLL, and the portfolio execution ability of our talented team who have worked diligently to execute on behalf of our investors.”

The portfolio has a mix of 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital. The portfolio includes nine properties in Arizona; five properties in Texas and Illinois; two properties in Florida and one property each in Minnesota, Massachusetts, California, Oklahoma, Colorado and Indiana.

The  portfolio is 97% occupied by key healthcare providers, including Advocate Aurora Health, Rush University Medical Center, Memorial Hermann, Ascension, Banner Health, Tenet Health, Lutheran Health Network, Baylor Scott & White Health and Edward-Elmhurst Healthcare.

The JLL Healthcare Capital Markets team representing the seller was led by Senior Managing Directors Mindy Berman, Evan Kovac, Andrew Milne and Brian Bacharach and Managing Directors Tim Joyce and Brannan Knott, with support from Vice Presidents Trent Jemmett and CJ Kodani. Local support was provided by JLL licensed brokers in each location.

“The offering was well received due to its scale and the mix of medical office and acute care facilities,” Berman said. “Healthcare assets have seen increased investor interest, as the sector offers long-term leases with quality tenants that provide steady income to landlords.”

To learn more, see RED Comps #9779, #9780, #9781, #9782, #9783 and #9784.

PHOTO #1: Marana Micro-Hospital, 5620 W Cortaro Farms Road; #2: Micro-Hospital, 7475 S Wilmot Road.

PHOENIX, Arizona – Meridian, a full-service owner, operator, and investor of healthcare real estate, is pleased to announce that the company has closed escrow on the sale of Grunow Memorial Medical Center. After renovating and repositioning the 53,000-square-foot medical office building in Phoenix, Arizona, Meridian has sold the building to a private Canadian investor for $17.9 million ($338 PSF).

The building is located in the Coronado Historic District of Phoenix at 926 E. McDowell and sits adjacent to Banner Health University Medical Center’s Phoenix Campus and Phoenix Children’s Hospital.

“The building was constructed in 1931 and originally designed by Arizona architect Lester A. Byron. It was one of the first clinics of its kind in Arizona where doctors could be located near a hospital. It also created the opportunity for patients to see their doctor in more of a residential setting rather than having to go downtown,” said Meridian’s Chief Asset Officer, Dan Rosenbaum.

Meridian acquired the building from PacVentures in August 2017 for $5 million, when it was 25% leased. “The property is now approximately 90% leased to 12 tenants, including DaVita Dialysis and a well-known regional infusion group,” continued Rosenbaum. “The acquisition of Grunow Memorial Medical Center represented Meridian’s first major transaction outside of California. This repositioning is a great example of how Meridian is leveraging its medical expertise to expand into new markets and solve real estate needs for our clients.”

“This project represented a challenging value-add opportunity where we could assist our clients with their outpatient ambulatory strategy,” said Rosenbaum. “We added fire sprinklers to the entire building, upgraded ADA, replaced the HVAC, reduced the load factor by reconfiguring space, and updated many of the second-generation medical spaces for our users.”

Once Meridian’s repositioning was complete, Meridian formed a joint venture with Harrison Street Real Estate, a Chicago-based investment management firm, for the recapitalization of the property in 2019. “Working with Harrison Street on this project aligned extremely well with our company’s mission to provide creative ambulatory healthcare real estate solutions that result in greater access to care and increased efficiencies. We trusted Harrison Street to be our partner in the remaining lease-up and ownership of the property,” said Rosenbaum.

“The renovation turned out great and resulted in a much better patient experience and environment to meet the demands of modern healthcare providers,” said Rosenbaum. “The project fulfilled a need in the market and is a great example of Meridian executing our vision and creating value.”

The clinic was built in memory of Lois Anita Grunow, a seven-year-old who passed away from a ruptured appendix. The façade of the grand entrance and the majority of its large windows are adorned with intricate stone carvings that lend reference to symbols of the medical profession. These designs continue throughout the historic, two-story open lobby, which contains various memorial plaques for doctors who have come and gone, as well as large hanging murals that portray significant milestones in the history of medicine.

“The history of this building is truly incredible,” said Rosenbaum. “It’s considered one of the premier Spanish Colonial Revival buildings in Arizona and, while the property itself has grown over the decades, the original structure, and its stunning façade, are still intact today.” For more information on the building’s background, please visit Frontdoors Media.

Meridian was represented by Senior Managing Director, Capital Markets and Healthcare Group Leader, Mindy Berman of JLL in the transaction.

Meridian currently owns and manages healthcare properties throughout the western United States. According to Rosenbaum, Meridian is aggressively pursuing acquisitions and developments in the western United States and is focused on opportunistic, value add, core plus, adaptive reuse and build-to-suit with major healthcare systems and physician partners.