Cypress West Partners Kicks Off Phoenix-Area MOB

Rendering of Ocotillo Medical Collaborative. Image courtesy of Cypress West Partners

Cypress West Partners has broken ground on Ocotillo Medical Collaborative, a 22,000-square-foot medical office building in Queen Creek, Ariz. The project is slated for completion in the third quarter of 2023.

Campbell Development serves as general contractor, Civil & Environmental Consultants provides civil engineering services, Dalke Design is the project architect and Design Ethic serves as landscape architect.

According to CommercialEdge data, metro Phoenix had nine primarily medical office properties under construction as of April, totaling 399,650 square feet; 39 projects were in the planned and prospective stages, set to add approximately 2.2 million square feet to the existing inventory.

An upcoming Phoenix-area medical facility

Cypress West Partners acquired the 2.5-acre development site at the end of 2022. According to Maricopa County records, the company paid $1.6 million for the land and received a $5.9 million construction loan, provided by First Fidelity Bank.

The Class A medical office building was already 87 percent leased prior to the start of construction to a mix of medical service providers, which are expected to move in the fourth quarter of 2023. The same county records show that the tenant roster will include Queen Creek Implants & Periodontics, Action Behavior Centers, Blyth Dentistry and MacDonald Orthodontics. The remaining space is under negotiations. Vice President Mark Haslip with Menlo Group is handling leasing services at the facility.

The property is at 22362 E. Domingo Road, at the intersection of Signal Butte Road and Ocotillo Road, 40 miles from downtown Phoenix and 2 miles south of State Route 24. Other medical service providers in the surrounding area include Desert Creek Dental, Pediatrics of Queen Creek and Queen Creek Professional Center, located less than 2 miles away.

Cypress West Partners has a portfolio of almost 2 million square feet of medical office properties located across the U.S. The company also has a current construction pipeline that includes more than 250,000 square feet in various stages of development. Jason Anzalone, managing director of development at Cypress, mentioned in prepared remarks that the medical office remains fundamentally strong despite headwinds.