Hammes Partners Pays $409 Per SQFT for AZ Medical Building

Spectrum Medical Commons, developed by Irgens in 2017, is adjacent to Mercy Gilbert Medical Center. JLL brokered the $17.8 million transaction.
Spectrum Medical Commons. Image courtesy of Yardi Matrix

Private equity platform Hammes Partners purchased Spectrum Medical Commons in Gilbert, Ariz., two years after developer Irgens completed the project. The 43,355-square-foot property sold for $17.8 million or $409.41 per square foot. According to Yardi Matrix data, the purchase was all cash.

Located at 3367 S. Mercy Road, the asset is adjacent to Mercy Gilbert Medical Center and close to other medical office parks. The tenants include Pain Stop Clinic, Dignity Health, Warner Park Surgery Center, The Center for Advanced Surgery and Advanced Surgical Associates. According to Yardi Matrix data, the property was 78 percent occupied. Kidder Mathews is the leasing broker.    

JLL’s Executive Vice President Brian Ackerman, who facilitated the transaction, said interest in the property has been high due to its location, stable tenancy and rents. The Southeast Valley, which includes Gilbert, has more than 300,000 square feet of medical office space under construction while rental rates remained affordable.