The boon for existing product is due to limited new constructionin the medical office arena. The buyer of record, 3720 Motor LLC,acquired the asset from Ensemble Investments, an owner of medicalproperties in Phoenix and Los Angeles.

"It was high-quality construction, with kind of a timelessarchitecture. I like the fact that the lease rates do not justifyany new construction of competitive space," Eric Wichterman, asenior vice president and principal with Grubb & Ellis/BRECommercial's Phoenix office, tells GlobeSt.com.

Located at 4616 N. 51st Ave., the 24-year-old Parkvale buildingsits alongside four others of the same product type on the campusof the 239-bed, Vanguard Health Systems-operated Maryvale Hospital.At 96% occupancy, the two-story building has one remaining suitefor lease. Rents are closer to the higher end of the spectrum formedical office properties in Phoenix, averaging $20 per sf.