9801 N Metro Pkwy E, Phoenix, AZ 85051

We are pleased to present this exceptional investment opportunity: a property leased to United Healthcare Services, Inc., a subsidiary of United Health Group, Inc. (NYSE: UNH). United Healthcare Services, Inc. is the largest Healthcare Management Company in the U.S., ensuring the stability and reputation of the tenant. The premises will serve as acmedical office building (MOB) with its day-to-day operations overseen by Optum, the healthcare provider arm of UNH.

The lease agreement spans ten years, commencing on February 8, 2024, providing a solid long-term commitment from the tenant. The lease incorporates scheduled annual rent increases of 3% during the primary term, allowing for consistent growth in rental income. Additionally, the lease provides the tenant with three (3) five-year options to renew, offering the potential for extended occupancy and a continued revenue stream. This property operates under a Net Lease structure, meaning that the tenant assumes responsibility for reimbursing the Landlord for taxes, insurance, and maintenance expenses. This provides the Landlord with a low-maintenance and predictable income flow. By acquiring this property, investors can benefit from a secure and reliable income stream, backed by the reputation and financial stability of United Healthcare Services, Inc., while enjoying potential rental growth throughout the lease term.

Developers Concord Wilshire Capital and TLG Investment Partners have begun the abatement and demolition of the Metrocenter Mall in Phoenix, beginning the $850 million redevelopment of the property into a mixed-use community.

The Metrocenter Mall opened its doors in 1973 and closed in 2020. The two-story, 140,000-square-foot mall is situated on 312 acres on the city’s northwest side. Plans for the redevelopment include more than 2,600 apartment units, as well as 100,000 square feet of retail space.

The demolition process has commenced with the destruction of the former Dillard’s and U-Haul buildings. Following a survey and analysis of the materials inside the building to ensure the protection of the public, Los Angeles-based Resource Environmental Inc. will abate and remove the asbestos from the building, then proceed with the demolition of the property.

The developers formed a strategic alliance in 2021 with Hines, an investment manager based in Houston, to redevelop the property, which the investment group purchased last summer. Hines is overseeing the development site on behalf of the ownership group.

According to the development team, the project has been designed as a transit-oriented, self-contained community. The property encompasses Phoenix’s new light rail station that was completed in January. The station provides direct connectivity to downtown Phoenix, Phoenix Sky Harbor International Airport and Arizona State University in nearby Tempe.