Virtus Real Estate Capital has acquired Banner Health Center Plus at The Grove, a 70,000-square-foot medical office building in Phoenix, for $48.5 million. The previous owner was RED Development, according to CommercialEdge data. JLL represented the seller.
According to the same source, the property was subject to a construction loan of $30 million in 2021, provided by Bankers Trust Co. that had a maturity date set for 2024.
The Class A, two-story building, which was completed in early 2023, offers a variety of medical services, including primary care, internal medicine, metabolic bariatric surgery, neurology, neurosurgery, cardiovascular, women’s health care, general orthopedics and sports medicine. The building is fully occupied by Banner Health Center Plus, Banner Health’s delivery platform, and is designed to offer physician appointments, as well as pharmacy, imaging and lab work.
A medical office within a mixed-use community
The property is located at 4200 E. Camelback Road, 10 miles from downtown Phoenix, which is accessible via State Route 51 and Interstate 10. Medical facilities in the surrounding area include Arizona Biltmore Dentistry, Camelback Pediatric Dentistry & Orthodontics and Phoenix Neck and Head Surgery. Phoenix Children’s Hospital is 5.5 miles away.
The medical facility is part of The Grove, a $400 million mixed-use project encompassing more than 750,000 square feet in Phoenix’s Arcadia neighborhood. The project broke ground in June 2021. RED Development leased a Class A office building within The Grove in October 2022.
The JLL team representing Virtus included Senior Managing Director Andrew Milne and Associate Liam Sorensen of the firm’s Healthcare Capital Markets team, as well as Senior Managing Director Ben Geelan, Executive Managing Director Kevin MacKenzie and Senior Director Will Mast of the firm’s Phoenix Capital Markets team.
