Virtus Pays $49M for Phoenix Medical Office Building

Banner Health Center Plus. Image courtesy of Virtus Real Estate Capital

Virtus Real Estate Capital has acquired Banner Health Center Plus at The Grove, a 70,000-square-foot medical office building in Phoenix, for $48.5 million. The previous owner was RED Development, according to CommercialEdge data. JLL represented the seller.

According to the same source, the property became subject to a $30 million construction loan in 2021; provided by Bankers Trust Co., the note had a maturity date set for 2024.

The Class A, two-story building came online in early 2023. The facility offers a variety of medical services, including primary care, internal medicine, metabolic bariatric surgery, neurology, neurosurgery, cardiovascular, women’s health care, general orthopedics and sports medicine. The building is fully occupied by Banner Health Center Plus, Banner Health’s delivery platform.

A medical office building within a mixed-use project

The property is located at 4200 E. Camelback Road, 10 miles from downtown Phoenix, which is accessible via State Route 51 and Interstate 10. Medical facilities in the surrounding area include Arizona Biltmore Dentistry, Camelback Pediatric Dentistry & Orthodontics and Phoenix Neck and Head Surgery. Phoenix Children’s Hospital is 5.5 miles away.

The medical facility is part of The Grove, a $400 million mixed-use project encompassing more than 750,000 square feet in Phoenix’s Arcadia neighborhood. The project broke ground in June 2021.

The JLL team representing Virtus included Senior Managing Director Andrew Milne and Associate Liam Sorensen, together with Senior Managing Director Ben Geelan, Executive Managing Director Kevin MacKenzie and Senior Director Will Mast.