PHOENIX, ARIZONA – CBRE announced the sale of a 27,500-square-foot, single-tenant medical office building in Phoenix to BLZ Company, LLC, a Colorado-based private investor, for $4.67 million ($170 PSF).
Chris Ackel, Andrew Fosberg and Dylan Brown represented the local seller, 2806 Cactus Partners, LLC, in the transaction.
The property, located at 2806 W. Cactus Road, is fully leased to Community Medical Services (CMS) on a long-term, triple-net lease. The property was built in 1980 and renovated in 2019 and 2020 as a build-to-suit for CMS, which provides substance abuse treatment in the form of outpatient medication assisted treatment and individual and group counseling.
The property sits on 4.49 acres and provides visibility and frontage along Interstate-17, Phoenix’s most highly trafficked interstate, which features over 293,800 vehicles per day, according to ADOT.
“The seller injected a significant amount of capital into this asset over the last year and has successfully repositioned the property into a highly trafficked, fully-leased behavioral health medical facility,” said CBRE’s Fosberg. “The Property was completely renovated in 2020 and is ideally positioned along Interstate-17, which drove significant demand by both institutional and private capital investors focused on stabilized healthcare real estate.”
Phoenix ranked 11th for total net-lease investment volume in Q1 2021 with $388 million, according to CBRE Research. Office net-lease investments in the market soared nearly five-fold to $161 million in the first quarter of 2021, up from $33 million in Q1 2020.