Archway Holdings Buys Glendale MOBs from Ventas for $20M
- Oct 21, 2012
In a $20 million deal, Archway Holdings Corp. has acquired Arrowhead Health Center, a 103,216-square-foot, two-building complex located near Arrowhead Hospital in Glendale, from Ventas Inc., the Phoenix Business Journal reported.
Formerly known as Arrowhead Orchards, the complex is about 65 percent leased, a level that Archway believes offers growth opportunities. The new acquisition expands Archway’s medical office portfolio in Arizona to about 400,000 square feet.
Arrowhead Health Center marks the biggest acquisition in the market for Archway so far in 2012. Earlier this year, the firm paid $8.6 million for Estrella Health Center, an 80,815-square-foot medical office property at 9250 W. Thomas Rd., from Chicago-based McShane Corp. The company also paid $5.9 million for Baywood Health Center and Broadway Health Center in Mesa. Eric Wichterman and Mike Coover of Cassidy Turley BRE Commercial represented Archway In both transactions.
A recent report from Marcus & Millichap Real Estate Investment Services Inc. shows that demand for medical office space in the Phoenix metro market grew in the past year, prompting developers to break ground on 140,000 square feet of new product that is expected to come online by mid-2013. Investment sales volume for medical office buildings has doubled over the last four quarters as investors show particular interest in properties valued between $1 million and $10 million.
Ventas’ medical office portfolio encompasses more than 320 properties throughout the U.S., 14 of them in Arizona, according to the company’s website.
Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.