Capital Square 1031 Buys Phoenix MOB

838 West Elliot Road. Image courtesy of Capital Square 1031

Capital Square 1031 has purchased a medical office building in the Phoenix suburb of Gilbert, Ariz. The acquisition was made on behalf of CS1031 MOB AZ I, DST, a Reg. D private placement.

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Located at 838 W. Elliot Road, the property comprises 15,286 square feet fully leased by Comprehensive Integrated Care (CIC), a private medical practice. The tenant executed a 15-year triple net lease in May, making them responsible for the operating expenses, taxes and insurance of the building. CIC was formed in 2013 and specialized as a multi-purpose clinic used by endovascular specialists.

Capital Square’s fund is looking to raise $5.8 million in equity from investors and has a minimum investment of $50,000. Marcus & Millichap Senior Vice President Chris Lind represented the seller in the deal.

Whitson Huffman, chief strategy and investment officer for Capital Square 1031, said in a prepared statement that the Phoenix area is experiencing a major population increase due to its lower cost of living, positive government environment and better quality of life, noting that the company and its tenant will benefit from the location and the growing need for medical care.

Phoenix’s office vacancy held strong at 18 percent in June, up 10 basis points month-over-month, according to CommercialEdge data. This figure remains higher than the national rate of 15.6 percent. In June, Woodside Health acquired Arrowhead Executive Center, a 98,958-square-foot medical office property in the suburb of Glendale.