Daniel Prosky, Triple Net Healthcare/Office's vice president of acquisitions, says the seller was a group of investors that had owned the 78%-leased complex about 2.5 years. Its adviser is West Coast Capital Partners LLC of Los Angeles.

Prosky says the sellers had upgraded and leased the buildings at 5310, 5410 and 5422 W. Thunderbird Rd. so it doesn't require much in the way of renovation "We set aside money for tenant improvements at the 5310 building, which is where most of the vacancy is," he tells GlobeSt.com, adding the tenant-improvement allowance is about $40 per sf.

Prosky says potential upside made the eight-acre property particularly appealing for the fund, which is in a buying mode for medical office buildings and office buildings affiliated with the healthcare industry. He says Thunderbird Medical Plaza presents growth potential because it isn't fully occupied. "It's unusual in medical real estate," he adds. "Most buildings are stable when they're bought. But in this case, we have a higher potential for rent growth and definitely more potential for lease-up."

The complex's neighboring hospital, Banner Thunderbird Medical Center, is undergoing a $200-million expansion to add 200 beds and emergency room services. "Thunderbird is the most profitable in the Banner System," Prosky says, "and we want to be affiliated with strong healthcare systems."

Triple Net Healthcare/Office REIT went live in October, raising its first $2 million by last January and building to $75 million at the last count. To date, the fund has acquired 17 buildings.

Prosky says the fund's goal is to be diversified in the healthcare arena in acquiring assets with attractive cap rates. It is targeting single-tenant assets, medical plazas, nursing homes and assisted living centers and bio-tech centers.

Prosky represented Triple Net Healthcare/Office REIT. Kevin Shannon, senior vice president with Los Angeles-based CB Richard Ellis represented the seller of record, 5410 and 5422 W. Thunderbird Road LLC and 5310 W. Thunderbird Road LLC. Thunderbird Medical Plaza was built in phases between 1975 and 1987.