"This is a very exclusive location in the town of Paradise Valley, and it's very difficult to get commercial zoning for development there," explains Steven W. Gonzalez, a senior investment associate with Marcus & Millichap Real Estate Investment Brokerage Co.'s Phoenix office. "We had multiple offers on this one, and the buyer was appealing because of an aggressive offer and financial condition."
Gonzalez and Marcus & Millichap-Phoenix's Jamie Medress teamed up with Bill Molloy of DevMan Co. LC of Phoenix to represent local seller Arizona Jackrabbit LLC in the disposition of the property at 5410 N. Scottsdale Rd. Buyer Chris Jones of Warmington Capital Partners LLC was represented by Erik Marsh, also of Marcus & Millichap's Phoenix office.
Paradise Valley Medical Plaza is situated on 8.5 acres, with an original building constructed in 1972. Gonzalez tells GlobeSt.com that a group of local plastic surgeons acquired the land with its building some years ago, and decided to build it out as a value-added opportunity. Construction on the seven other buildings was recently completed, and the former owners will remain tenants.
While specific details of the lease were not release due to confidentiality agreements, Gonzalez says the rents are $24 per sf, triple net. The complex is currently at 84% occupancy. The buyer doesn't plan any upgrades, and will hold the property for investment purposes.
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