Phoenix Children's Hospital

Property Overview

5983 East Grant Road, Suite 201, is a 6,740 SF medical office condominium in Tucson, Arizona, built in 2008. The property is 100% occupied by Phoenix Children's Hospital on a triple net lease.

Challenge

Our team was engaged by a repeat client who needed to complete a 1031 exchange and acquire a suitable replacement property. The assignment called for identifying a net-leased medical office asset that met the client's exchange requirements and offered the passive, stable income structure typical of single-tenant net lease investments. Coordinating a 1031 acquisition adds timing pressure to any transaction, requiring the right property to be identified, negotiated, and closed within IRS-mandated deadlines.

Action

We focused the search on single-tenant, net-leased medical office properties with creditworthy tenants and minimal landlord obligations. The Tucson condominium occupied by Phoenix Children's Hospital met those criteria. Our team guided the client through due diligence on the asset, negotiated on their behalf, and coordinated with all parties to keep the transaction on track within the 1031 exchange timeline.

Result

• Secured a 100% occupied, single-tenant medical office condominium for a 1031 exchange client
• Phoenix Children's Hospital occupies the full 6,740 SF on a triple net lease
• Sale price: $1,600,000 ($237 per SF)
• Successfully closed the acquisition for a repeat client, completing their 1031 exchange