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Deals Of The Week: Historic Medical Office Sells For $12 Million

Deals Of The Week: Historic Medical Office Sells For $12 Million

Office building, retail parcels highlight this week’s deals

By Corina Vanek | Phoenix Business Journal

Historic Phoenix property

Grunow Memorial Medical Center, a 53,000-square-foot, two-story Phoenix medical office building at 926 E. McDowell Road, sold to Chicago based-Harrison Street for $12.35 million.

Meridian, an affiliate of Marcus & Millichap Co., had previously collaborated with Harrison Street to lease up the property. Meridian had acquired the building in 2017, which was 25 percent leased at the time. It is now about 90 percent leased to 12 tenants, including DaVita Dialysis.

“Grunow was one of the first clinics of its kind in Arizona where doctors could be located near a hospital,” said Mike Conn, senior vice president at Meridian, in a statement regarding the structure, which was built in 1931. “It also created the opportunity for patients to see their doctor in more of a suburban setting rather than having to go downtown.”

Alexandra Loye and Julie Johnson of Avison Young assisted Meridian in both the leasing and sale of the building.

“We are very excited about partnering with Meridian on the ownership of this iconic building,” Mike Gordon, senior managing director at Harrison Street, said in a statement. “The partnership on Grunow Memorial Medical Center aligned extremely well with our firm’s strategy of investing in high quality healthcare real estate.”

North Phoenix office

A fully leased, 32,000-square-foot, multi-tenant office building at 2730 W. Agua Fria Freeway sold for $5.225 million.

Pathfinder Partners LP and Global Building LLC sold the building to Devil Digs Properties LLC.

Darren Tappen and Peter Beauchamp of Kidder Mathews represented the seller in the transaction. Michelle Gardner of Kidder Mathews represented the buyer.

“Leveraging relationships among Kidder Mathews brokerage and property management was key in this transaction to meet the buyer’s timeline, product and class type, and return on investment requirements,” Gardner said in a statement.

Campbell Crossing

Campbell Crossing, a 23,725-square-foot retail center at 4514 N. 16th St. in Phoenix sold for $2.5 million, and the buyer plans to do extensive remodeling and tenant repositioning.

Del Mar Ventures Group bought the complex from MCK Realty. Jerry Jacobs and David Guido of Newmark Knight Frank represented the buyer.

New coffee shop

Bikini Beans Coffee signed a ground lease for its third location in the Valley at 2816 S. Country Club Drive in Mesa.

Natan Jacobs and Matt Morrell of Vestis Group represented Bikini Beans.

“We are currently working on a fourth store location in the West Valley and actively seeking additional locations for Bikini Beans Coffee across Metro Phoenix,” Morrell said in a statement.  – more at