PRESCOTT, Ariz. – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of Yavapai Regional Medical Center – Physician Care, a triple-net-leased medical office located in Prescott, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $2,525,000.
Alan Laulainen, Jamie Medress, Mark Ruble and Chris Lind, investment specialists in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, Sarti Properties, Ltd, a local family owned investment company headed by Mike Sarti. “After considering a multitude of options, the family partnership decided to dispose of the asset in favor of developing some land holdings,” Laulainen explained.
The Marcus & Millichap marketing platform was instrumental in sourcing a 1031 exchange buyer from Oregon. The buyer was looking for higher yield than traditional primary markets and decided to purchase the property to hold as an investment and renegotiate an extension to the current lease. “Yavapai Regional Medical Center is a well-run profitable rural hospital system with a Moody’s ‘A2’ credit rating. Our team effectively demonstrated the longevity the tenant has had in the asset as well as the phenomenal growth that Prescott/Prescott Valley is experiencing to get the buyer comfortable with the market,” Laulainen added.
Yavapai Regional Medical Center – Physician Care is located at 2120 Centerpointe West Drive in Prescott, across from Prescott Regional Airport and just minutes from Embry-Riddle Aeronautical University. Built in 2008, the 8,622-square-foot medical office is situated on 1.27 acres. The property is visible to more than 17,855 vehicles per day from AZ State Route 89A (Pioneer Parkway). The surrounding five-mile radius has 34,594 residents with a projected 16% increase in households by 2023.