Newmark announces the sale of Scottsdale Medical Pavilion located in Old Town Scottsdale. The 53,157-square-foot, three-story, multi-tenant medical office building sold for $9.18 million or $172.70 per square foot. Located at 7331 East Osborn Road, Scottsdale Medical Pavilion is adjacent to HonorHealth Scottsdale Osborn Medical Center.
Newmark Managing Directors Kathleen Morgan and Trisha Talbot and Associate Michelle Rae represented the seller, Klingbeil Capital Management (KAMF Scottsdale, LLC), a nationwide family office and institutional investment manager, in the sale to a private real estate ownership group of CHP Scottsdale Medical Pavilion LLC, 2121 Canyon LLC and Holdings LLC. A cash-flow positive property offering relatively short-term tenant leases at below market rental rates, Scottsdale Medical Pavilion provided a lucrative value-add opportunity for investors.
“I am honored that the ownership of Scottsdale Medical Pavilion trusted Newmark and our team to market and sell their unique project,” commented Morgan. “We promoted the opportunity to a select group of buyers and identified a well-established medical office building owner interested in purchasing the architecturally creative, fee-simple, multi-tenant asset. This transaction supports the nation-leading macroeconomic and demographic trends driving investor demand for medical properties in Phoenix.”
According to a 2019 study by the Brookings Institute, Phoenix has been the overwhelming leader nationally for 55+ net migration since 2004, growing at roughly twice the rate of the next highest city. The metro’s senior population is forecasted to increase 55.9 percent by 2030, compared to 30.5 percent, nationally.
“We are so pleased with the outcome and sale of Scottsdale Medical Pavilion,” stated Mark Mullen, vice president of Klingbeil Capital Management. “Kathleen and Trisha effectively considered and met the needs of all parties involved and brought the transaction to a successful close; they are experts in the Phoenix medical market.”
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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