Daniel Prosky, Triple Net Healthcare/Office's vice president of acquisitions, says the seller was a group of investors that had owned the 78%-leased complex about 2.5 years. Its adviser is West Coast Capital Partners LLC of Los Angeles.
Prosky says the sellers had upgraded and leased the buildings at 5310, 5410 and 5422 W. Thunderbird Rd. so it doesn't require much in the way of renovation "We set aside money for tenant improvements at the 5310 building, which is where most of the vacancy is," he tells GlobeSt.com, adding the tenant-improvement allowance is about $40 per sf.
Prosky says potential upside made the eight-acre property particularly appealing for the fund, which is in a buying mode for medical office buildings and office buildings affiliated with the healthcare industry. He says Thunderbird Medical Plaza presents growth potential because it isn't fully occupied. "It's unusual in medical real estate," he adds. "Most buildings are stable when they're bought. But in this case, we have a higher potential for rent growth and definitely more potential for lease-up."
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