Medical Office Buyer Pays $5M for First Phoenix Deed

PHOENIX-With existing “for lease” medical office buildings showing solid performances, a purchasing entity of California-based 1st London is tapping into the market with a first buy, spending $5 million for the 41,956-sf Parkvale Medical Building on the Maryvale Hospital campus.

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

“It was high-quality construction, with kind of a timeless architecture. I like the fact that the lease rates do not justify any new construction of competitive space,” Eric Wichterman, a senior vice president and principal with Grubb & Ellis/BRE Commercial’s Phoenix office, tells GlobeSt.com.