HealthyU Phoenix

Challenge

Our team was engaged to identify a suitable medical office replacement property for a buyer completing a 1031 exchange. The assignment required sourcing an asset that met the buyer's passive investment criteria while coordinating a closing timeline around the completion of tenant improvements — a complication that added coordination complexity to an already time-sensitive exchange process.

Action

We collaborated with the Kidder Mathews Phoenix office to identify opportunities in the Phoenix market that aligned with the buyer's exchange requirements. The search focused on single-tenant medical office properties with stable occupancy. Once the HealthyU property at 15255 N 40th St was identified, we coordinated directly with the developer to ensure tenant improvements were completed prior to closing, keeping the transaction on track for the buyer's exchange deadline.

Result

• Identified a 100% occupied, single-tenant medical office property in Phoenix, AZ as the 1031 upleg
• Successfully coordinated tenant improvement completion with the developer before closing
• Closed at $3,068,000 ($582 per SF) on a 5,270 SF medical office building built in 2005
• Delivered a fully stabilized, passive asset that satisfied the buyer's exchange requirements