CNL Financial Group Acquires Two Medical Offices at John C Lincoln Hospital

VIZZDA—August 20th, 2013 — In a two-property transaction that totaled over $13m, Stephen Mouldin of CNL Financial Group acquired ground leases for the John C Lincoln Medical Plaza and the North Mountain Medical Plaza in the vicinity of the John C Lincoln Hospital in North Phoenix. The seller was a co-venture between Montecito Medical Operating Company and Harrison Street Real Estate, represented by Montecito’s Vice-President, Roger S Williams.

John C Lincoln Medical Plaza is a 51,097ft2 complex comprised of two buildings of 31,732 and 19,365 ft2, built in 1980 and 1986, respectively. The property is described as a sub-acute care facility. CNL paid $3,848,966 in cash for the property and encumbered it with a new debt of $4.79m and under an existing $35.71m cross-collateralized note, both with Prudential Life Insurance Company.

North Mountain Medical Plaza is a 29,604ft2 3-story medical office building, built in 1994 on 1.95 acres. CNL acquired the property with financing similar to that under which they acquired the John C Lincoln Medical Plaza, to wit: $1,543,091 in cash with $3.53m new debt and encumbrance under the same $35.71m note as above. In both cases transfer was effected through a quit-claim following an assignment of the 59-year ground lease between John C Lincoln Health Network as landlord and the Montecito/Harrison Street joint venture.

The properties were previously acquired under said 59-year ground lease on February 29th,2008. While no affidavit of property value recorded with the sale, the Joint-Venture did secure $11.75m in new debt with Fifth Third Bank, maturing February 28th, 2011 subject to extension to February 28th, 2013. That note was modified on April 13th, 2011 to exercise the extension option and decrease the principal balance to $9.96m. That note was ultimately released and replaced with $10.55 in new debt with GE Capital, issued June 28th, 2012.

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By:

Paul Dionne

Director of Analytics

Vizzda.com

East Valley Professional Plaza Sells for $5.94m

Vizzda – May 13, 2013 –  Dr. Sylvester Johnson, PhD, an investor based out of Laguna Beach and New York City, has acquired the East Valley Professional Plaza from Ensemble Real Estate Solutons for $5.94m or $313.82 per ft2. Dr Johnson paid cash and secured $3.3m in new debt with Wells Fargo.

The East Valley Professional Plaza is an 18,928 ft2 two-story medical office built in 2007 on 2.01 acres zoned LC or “Limited Commercial.” Aerial indicates ±109 parking spaces or a parking ratio of ±5.75/1000 ft2. The office is located at the southeast corner of Higley Road & Southern Avenue in Mesa and is leased to pediatric dentists and eye specialists. 

Per historical broker flyer, this property had been offered for sale at $6.05m. Ensemble Real Estate acquired the property as 211,215 ft2 or 4.85 acres of vacant land on January 11, 2006 for $2,862,747 or $13.55 per ft2 with no debt. This land acquisition includes the adjacent property at 5131 E Southern Ave–now a ±31K ft2 medical office also built in 2007 and still owned by Ensemble.  Randy P McGrane of Ensemble closed the deal.

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Edward Moore
Director of Research
www.vizzda.com

Clyde Wright Health Center Sells to Banner Health for ~$6.17m

 VIZZDA February 19, 2013 – Banner Health of Phoenix has expanded the footprint of its Good Samaritan Hospital campus by acquiring the 93,411 ft2 Clyde Wright Health Center yesterday for $6,169,742 or $66.00 per square foot from a private ownership group led by Dale and James Zeitlin of Zeitlin & Zeitlin. The sale price is the sum of eight consecutively recorded deeds representing a consolidation of interest between and among the descendants of the original assemblers.

The Clyde Wright Health Center consists of two medical office buildings: a 6,461 square foot one-story office building and an 86,950 square foot four-story office tower. These buildings sit on 5.59 acres (gross) of grade level parking. These medical offices are located at 755 E McDowell Rd in Phoenix—just 500 feet west of Good Samaritan Hospital. Cigna Medical Group operated the property since at least June of 1989 as an MRI outpatient treatment facility—though various sources indicate that it is currently vacant.

Albert Zeitlin and Martin David assembled the land upon which these offices sit in a series of transactions recorded starting in 1980. They obtained an $8.0 million construction loan on September 4, 1984 from First Interstate Bank of Arizona and the offices were built in 1982. An outstanding $1.25m debt dated April 20th, 2004 with State Farm Bank is released with the sale. The families of Albert Zeitlin and Martin David have held the property since that time and constitute the bulk of the private ownership group selling this week to Banner Health.

Edward Moore
Director of Research

www.vizzda.com

Medical Office Building Sold to Cole Capital for $23m+

Medical Office BuildingVIZZDA—December 19th, 2012 — Chicago-based industrial and office developer, Clarius Partners, has completed the sale of a 90,300-ft2 medical office building at the Southeast corner of 3rd Street and Earll Road for $23,781,541 or $263.36 per square foot. Tim Schenk of Cole Capital paid cash for the property to be occupied by Cigna Medical Group beginning in 2013.

The 3-story building was completed in the fourth quarter of 2012 and sits on 6.9 acres, zoned R-5. The property was designed to attain an USGBC LEED Silver designation. The adjacent 1.37 acres of vacant land is retained by Clarius Partners with reciprocal easements for development between the buyer and seller. All property information per developer.

Clarius Partners, through its principals H. Steven Duncan and Kevin Matzke, acquired the site on August 17th, 2011 for $8.04m following the demolition of Mountain Bell Plaza—the former headquarters of Qwest in Arizona. They paid $504,321 in cash and secured $18.15m in new construction debt with PrivateBank and Trust, maturing August 13th, 2013.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Scottsdale Healthcare Corp purchases McCormick Place Office Complex for $15,000,000

VIZZDA–OCTOBER 2ND, 2012– The McCormick Place Office Complex was purchased by Scottsdale Healthcare Corp for $15,000,000 or $202.82 per square foot. The seller was Michael S Mikulich of Berkley Land Co. Scottsdale Healthcare Corp and Berkley Land Co previously entered purchase agreement December 9th, 2011.

The 73,957 square foot, three-story building is located at 8125 N Hayden Road, or the Northeast corner of Hayden Road and Via de Venture in Scottsdale. The property consists of 2.83 net acres zoned C-O and includes a 224-space above and below grade level parking garage. Zoning approval granted February 2nd, 2010 for addition of one-story (81 spaces) onto parking garage, which would bring the total parking to on site to 358 spaces. This addition was never built and the total current parking on site stands at 277 spaces. The current parking ratio on site is 4.98:1000 SF.

Berkeley Land Co previously acquired the property from Abart Properties on December 17th, 2004 for $17,700,000 or $239.33 per square foot with assumption of $10,512,000 Wells Fargo Bank CMBS debt. A new $9,600,000 loan with Wells Fargo Bank was issued on February 26th, 2010. CMBS debt was released August 24th 2010. $9,600,000 debt released February 15th, 2012.

BY:

Daniel Alpers

Director Planning & Municipal Solutions

Shea Medical Plaza Sold Out of Double G Ranch Liquidation

VIZZDA–August 28th, 2012 — Tim Shaffer of Clotho Corporate Recovery, acting in his capacity as liquidation trustee for Double G Ranch, has sold the Shea Medical Plaza for $6.5m or $148.95 per square foot.  The 43,639 SF medical office building was developed by Lawrence Grinnell of Double G Ranch in 1998 on 2.65 acres East of the Southeast corner of Scottsdale Road and Shea Boulevard. The property includes approximately 34 surface parking spaces as well as a 54,618 SF sub-grade parking facility and is zoned S-R.

The buyer, Duane Nolde of Irgens Development Partners, put $2.36m down and secured $4.14m in new financing with The Privatebank and Trust Company. Based in Minneapolis, MN, Irgens specializes in the construction, acquisition and management of office, industrial and medical commercial properties in Phoenix, Chicago and Minneapolis. Irgens lists six additional properties under management in the Phoenix area including four additional medical properties.

Grinnell acquired the land on which the facility sits on January 8th, 1997 for $1,393,120 from Gary Herberger of Herberger Enterprises. Herberger retained an option to re-purchase the property following the completion of construction which expired without being exercised 12 months after the sale. On April 20th, 2010, Double G Ranch filed for Chapter 11 Bankruptcy Protection in the Eastern District Court of Michigan, a liquidation trust was created to sell the assets of Double G Ranch and Clotho Corporate Recovery was named trustee and administrator. 

By:

Paul Dionne

Director of Analytics

HCP Acquires Eight Medical Office Buildings from Scottsdale Healthcare

VIZZDA–August 9th, 2012 — Healthcare REIT HCP ($HCPI) Inc of Long Beach, CA has acquired eight medical office buildings in Scottsdale from Scottsdale Healthcare. Thomas M Klaritch for HCP Inc and Alan Kelly and Tom Sadvary for Scottsdale Healthcare were signatories on the deal. From HCP’s second quarter highlights: 

“On July 30, 2012, we executed agreements to acquire eight on-campus MOBs for $81 million from Scottsdale Healthcare. The eight on-campus MOBs located in Scottsdale, Arizona comprise approximately 398,000 rentable sq. ft. and have a current occupancy of 89%. We expect to close this acquisition early August 2012.” 

Vizzda reports the sale of these properties as closing August 7th, 2012 at a price of $75,304,875 for a total of 410,317 SF.  HCP signed 50 year ground lease agreements with Scottsdale Healthcare for each property with an option for 25 additional years. The properties are as follows:

Vizzda reports the sale of these properties as closing August 7th, 2012 at a price of $75,304,875 for a total of 410,317 SF.  HCP signed 50 year ground lease agreements with Scottsdale Healthcare for each property with an option for 25 additional years. The properties are as follows:

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BY:

Edward Moore

Director of Research