The 152,600-sf, multi-tenant medical office building, built in 1998, is located in the Camelback Corridor, one of the fastest growing submarkets in the Valley. The building is now the largest individual asset in the REIT's specialty medical property portfolio.

The 99.7%-leased medical facility houses an ambulatory surgery center and includes an attached 787-space parking garage. Iasis Healthcare LLC, the largest tenant, leases 30% of the space for the Biltmore Surgical & Recovery Care Center. Other tenants on the roster include Biltmore Orthopedic Surgeons and the Orthopedic Clinic Association. According to the REIT, the building not facing any significant lease rollovers until 2008. and the incremental net operating income exceeds $500,000 per quarter.

Windrose assumed $32.4 million in debt on the property and drew from a syndicated line of credit for the cash balance of the purchase price. The deal left Windrose with $30.6 million outstanding on a $70-million credit facility, according to the REIT's press release. Fred S. Klipsch, Windrose chairman & CEO, says the acquisition of Biltmore Medical Mall pushes the REIT's acquisition volume to $110 million so far this year.