HAYDEN, Idaho and LAYTON, Utah – An affiliate of Livingston Street Capital, a boutique private equity firm focused on commercial real estate investments throughout the U.S., has sold two medical office properties totaling 31,500 square feet to AEI Net Lease Portfolio 19 DST.

The assets, which include a 15,000 square-foot building in Hayden, Idaho and a 16,500 square-foot building in Layton, Utah, are both 100% leased to BioLife Plasma Services L.P, an industry leader in the collection of high-quality plasma that is processed into life-saving plasma-based therapies. The properties sold for a total consideration of $14.4 million, according to Peter Scola, President and Co-CEO of Livingston Street Capital.

“The properties greatly benefit from the strength of the tenant and its long-term operating history at both of these locations,” says Scola. “There is strong investor demand for healthcare assets due to the duration of income and attractive stability they provide throughout economic cycles. Medical offices further proved their resilience during the pandemic, seeing the lowest decline in investment volume in 2020 of all major property sectors, and an increase in average asking price over that same period.”

Scola notes that part of Livingston’s strategy is to focus on investments that serve an essential need for tenants and that can achieve significant growth potential. This focus also means recognizing when it is time to be flexible and pivot acquisition and disposition strategies to best meet the ever-changing market and maximize returns.

“The facilities are newer construction, build-to-suit properties that are equipped to serve not only the immediate local community, but populations that travel from further distances to receive life-changing therapies and tests,” says Scola. “These essential services, combined with the strength of the healthcare sector, make the properties positioned to generate stable, long-term growth. By leveraging these strengths, we were able to pivot our original strategy to meet the demand of the current market for quality properties and profitability monetize our investment.”

The two properties acquired include:

• 8300 N. Cornerstone Drive in Hayden, Idaho: This property is located in the eastern portion of Hayden, Idaho and is conveniently situated just off U.S. Route 95
• 781 Heritage Park Boulevard in Layton, Utah: The property is located in Layton, the most populous city in Davis County and the ninth most populous city in the state.

In addition to healthcare assets, Livingston continues to actively acquire core and core-plus investments around the country across a range of sectors, including active adult, independent living, and traditional multifamily communities.

GREEN VALLEY, ARIZONA – The former Chase Bank at 151 West Esperanza Blvd in Green Valley sold for $1.1 million ($172 PSF).

Built in 1968, the 6,389-square-foot building sits on a .84-acre lot and sold with the safe still intact.

The buyer plans to integrate safe and all into the conversion to a veterinary clinic within the next 9 – 12 months.

Dave Hammack, Principal, Retail Specialist with Cushman & Wakefield | PICOR, represented the seller, JP Morgan Chase Bank, NA. Zdravko “Z” Manov with GILES Healthcare Real Estate represented the buyer LJN Properties, LLC. Stacy Nolasco, DVM of Valley Verde Veterinarians.

For more information, Hammack should be reached at 520.546.2712 and Manov can be contacted at 602.635.7776.

To learn more, see RED Comp #9679.

PHOENIX, ARIZONA – CBRE has arranged $35.5 million in financing for a ground-up spec construction project called Converge Logistics Center in Phoenix, Ariz. The property is comprised of three to-be-built, Class-A industrial buildings that will feature approximately 500,000-square-feet of rentable space.

Mike Walker and Brad Zampa with CBRE Capital Markets’ Debt & Structured Finance group arranged the loan on behalf of the sponsors, ViaWest Group and its institutional capital partner. The non-recourse, floating rate loan has a three-year term with two extension options and was secured through a regional bank headquartered in the southern U.S .

Converge Logistics Center will be built on 28.6-acres, which the sponsor controls through a ground lease with the Kyrene Elementary School District. Individual buildings will range from 140,000 sq. ft. to 210,000 sq. ft. and may be leased to a single tenant or are divisible to 23,500 sq. ft for multi-tenant use. The buildings will have 32 ft. clear heights, a combination of dock-high and grade-level doors and office suites at the front. Construction on all three buildings broke ground in January and is estimated to complete in the fourth quarter of 2022.

“We’re thrilled with the outcome on the Converge construction financing. The institutional expertise and local track record of the joint venture had both regional and money center banks competing aggressively for this opportunity. Lenders were excited to get exposure to the incredibly strong fundamentals in the Phoenix industrial market,” said Mike Walker, e xecutive vice president, CBRE.

The industrial park is located at 15175 S. 50th St. in Phoenix’s Southeast Valley submarket, home to the metro area’s second-largest industrial presence with nearly 80 million-square-feet of industrial space. The property borders the I-10 freeway and is within a short walk of the Ahwatukee Foothills Towne Center, home to a variety of restaurants, shop and entertainment.

“With the growing industrial market in Phoenix, Converge Logistics Center helps fill the demand for small to medium tenants,” said Danny Swancey, partner, ViaWest Group.

Converge Logistics Center is the sponsorship’s third investment together in the Phoenix area. Metro Phoenix’s industrial market recorded over 21 million sq. ft. of positive net absorption in 2021, a new record for the region, according to CBRE research.