The East Valley continues to be an especially strong market for healthcare real estate, with DOCPROPERTIES brokering the sale of the 2,713-square-foot medical office condo at 4915 E. Baseline Road, Building 6, #114 in Gilbert for $1.15 million. At $424 per square foot (PSF), the suite commanded nearly 50% more than the $285 average PSF for the Phoenix area in Q2 2022.
DOCPROPERTIES represented the seller, Gateway Arizona Eye Specialists LLC, in the sale-leaseback transaction, which closed on Sept. 2 — 17 days after signing the Purchase and Sale Agreement and much faster than the 60 days such deals typically require. DOCPROPERTIES had due diligence completed prior to going to market, and the building required no deferred maintenance.
Werner Treichler purchased the building using a 1031 intermediary to defer 100% of capital gains taxes and will lease it back to the Arizona Eye Specialists practice for 10 years.
“With the Phoenix market at the height of the real estate cycle and capitalization rates low, but expected to climb with interest rates, many physician owners are maximizing their returns through a sale-leaseback that provides them with cash to use in operating the business, purchasing another property or investing in other assets,” said Trisha Talbot, managing principal of DOCPROPERTIES, a real estate investment services firm that serves healthcare practices, physician owners and investors. “Selling while prices are high gets them optimal value and when the lease expires, they can renew or vacate without concerns for market conditions or finding a replacement tenant.”
With 20 years of experience putting together healthcare real estate deals and extensive knowledge of the Arizona market, Talbot consistently ranks among the state’s top commercial real estate brokers for more than a decade. DOCPROPERTIES assists clients with facilities ranging from ambulatory surgical centers and urgent care properties to medical office buildings. The firm also identifies opportunities for adaptive reuse and helps clients build to suit.