GILBERT, Ariz. – Northbrook, Ill.-based MedProperties Group (not to be confused with the unaffiliated, Dallas-based MedProperties Holdings) has ventured west for its latest MOB acquisition, acquiring Mercy Medical Commons in Gilbert, part of what the company calls the “rapidly growing” East Valley region of Greater Phoenix.
According to MedProperties Group’s website, the Gilbert building is the company’s only medical facility outside of Greater Chicago. The sales price was not revealed.
According to MedProperties Group, Mercy Medical Commons is a 48,000 square foot MOB adjacent to the 206-bed Mercy Gilbert Medical Center, part of San Francisco-based Dignity Health. The MOB, which is 89 percent leased, was the 2010 NAIOP Medical Office Development of the year. Tenants include Scottsdale Medical Imaging and Arizona Center for Cancer Care.
According to Matthew J. Campbell, founding partner and CEO of MedProperties Group, the firm has acquired more than 250,000 square feet of medical space during the past 18 months or so. He expects more acquisitions to come.
“A strong pipeline of attractive acquisition and development opportunities is expected to continue MedProperties Group’s growth into 2014 and beyond,” he added in a statement.
The company notes that Milwaukee-based Irgens took over the development of the MOB project after the original developer was unable to secure financing. The building was completed in September 2010, with Irgens using its own debt and equity sources to finance the project. At the time of the building’s opening, Irgens gave plenty of credit to a local brokerage firm, Grubb & Ellis/BRE Commercial, for pre-leasing the building to 70 percent.
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