Construction Completed on Phoenix-Area MOB

MedProperties Group took out nearly $14 million to finance the development of the 58,600-square-foot asset in Gilbert, Ariz.
Mercy Medical Commons II

MedProperties Group has completed construction on Mercy Medical Commons II, a 58,600-square-foot medical office building anchored by The CORE Institute in Gilbert, Ariz. The development broke ground in 2019, with Balfour Beatty serving as general contractor. According to Yardi Matrix data, the developer secured a three-year, $13.9 million loan from Lake Forest Bank & Trust Co.

Designed by Ware Malcomb, the Class A, three-story building at 3591 S. Mercy Road has the largest contiguous medical office space on one floor in Gilbert. The property features 19,565-square-foot floorplates and a parking ratio of 5.5 spots per 1,000 square feet. The CORE Institute leased 20,000 square feet on the first two floors of the facility and will relocate to the new address in October.

Located across from Dignity’s Mercy Gilbert Medical Center, the 6-acre property is approximately 7 miles southeast of the city center, adjacent to the 46,700-square-foot Mercy Medical Commons I, another MedProperties asset. The surrounding area is home to various health-care providers such as The Medical Plaza AT Spectrum and Mercy Point Medical Center. 

Colliers’ Philip Wurth and Alexandra Loye spearhead the leasing efforts at the medical property. In March, Loye was instrumental in the sale of a 15,300-square-foot Gilbert asset that will be converted into an ambulatory surgery center.