Cushman & Wakefield of Arizona Inc. director Brian Ackerman says both buyers used 1031 exchange funds for their purchases, while funding the remaining amount with loans from San Francisco-based Bank of the West. Morelli Revocable Trust in Southern California ended up with 17,979 square feet at 337 E. Coronado Rd. for slightly more than $6 million and, while MRK Properties in Novato, CA acquired the 12,148-square foot asset at 20325 N. 51st Ave. for $4.1 million. Both assets traded at a 7.5% cap rate and were completed in 2006 and 2007.

"The seller thought this was a good time to sell because of the market conditions; Southwest Kidney is selling real estate to redeploy capital elsewhere," says Ackerman, who represented SKI Properties LLC with Cushman & Wakefield senior director Karsten Peterson. Sun Commercial Real Estate Inc. executive vice president and Arizona designated broker Paul Miachika teamed with Sun Commercial president and Nevada designated broker Cathy Jones on behalf of the buyers.

All buildings in the portfolio have two tenants, one of which is physician groups employed by the Southwest Kidney Institute. The other tenant is DaVita Dialysis Partners, which offers dialysis services. The leases in the buildings average about 10 years, and Ackerman tells GlobeSt.com the buildings remaining are ideal for an investor seeking a stable asset with credit tenants.

The two buildings are being marketed by Ackerman and Peterson, and consist of a 21,082-square-foot structure at 2149 E. Warner Rd. in Tempe and listed at $6.8 million; and a 9.962-square-foot building at 8410 W. Thomas Rd. in Phoenix, which carries a $3.1 million asking price. Ackerman says offers are still being accepted for these properties. The portfolio's other building was sold during summer 2008.