Concorde Medical Center
For Sale | Office-to-Medical Conversion Opportunity | Phoenix, AZ
Marketing description
Concorde Medical Center ("the Property") is a 139,709-square-foot multi-tenant medical/office building located at 2222 W. Dunlap Avenue, Phoenix, Arizona, within the North Central Phoenix medical corridor. The Property offers investors the opportunity to acquire a well-located asset positioned to benefit from strong healthcare demand, limited new supply, and sustained population growth in the Phoenix market.
Constructed in 1998, the Property is proximate to three major hospitals: HonorHealth North Mountain Medical Center, Banner Thunderbird Medical Center, and HonorHealth Deer Valley Medical Center. The surrounding five-mile trade area includes more than 1,370 practicing physicians and 3,200 healthcare providers, serving a population exceeding 450,000 residents, including 63,000 seniors—a key driver of outpatient medical demand.
Current tenancy comprises a mix of medical and office users, including dialysis and pain management practices that validate the medical conversion. Datavant (CIOX Health) occupies approximately 71% of the rentable area for administrative purposes. Datavant is currently subleasing a portion of their space and marketing the balance for sublease. This provides a unique value-add opportunity to recapture space for medical conversion, but with nearly five years of lease term remaining, investors will also benefit from the dependability of income this anchor tenancy provides.
With a projected 64% NOI growth over a 5-year hold, Concorde Medical Center offers investors a compelling value-add opportunity. Proof-of-concept is on the rent roll with two new recently executed medical leases accounting for 21% of current occupancy at the Property. With limited supply of medical space and a steadily growing demand, the Property is well-positioned to compete for medical tenants looking in the North Central Phoenix medical corridor.
Investment highlights
- 139,709 SF medical/office building situated in the high-demand North Central Phoenix medical corridor, proximate to three major hospital campuses: HonorHealth North Mountain, Banner Thunderbird, and HonorHealth Deer Valley. Strategically located near Metrocenter Mall's $850 million redevelopment, which will include over 1,000 for-rent and for-purchase townhomes, 350 multifamily units, 140,000 SF of retail space, and dynamic outdoor space.
- The Metro Light Rail's Northwest Extension Phase II, which was completed January 2024, serves as the northern starting point of the rail line, extends west along Dunlap Avenue in front of the Property, with stops on either side of Concorde Medical at 19th and 25th Avenues
- Trade area includes over 1,370 physicians and 3,200 healthcare providers serving 450,000+ residents, including 63,000 seniors, supporting sustained outpatient medical demand.
- Approximately 71% of the building is leased to Datavant (CIOX Health) as administrative office space. Proposed early termination and conversion of Datavant lease, with the exception of Datavant lease subleased to Constar Financial Services, to medical use provides potential for rent growth and cap rate compression.
- Conversion strategy and lease-up initiatives are projected to deliver 64% NOI growth over a five-year hold, enhancing long-term asset value.
- Existing medical tenancy accounts for 21% of current occupancy at the Property specializing in dialysis and pain management, validating the medical conversion thesis and supporting long-term tenant demand.
- Phoenix market benefits from constrained new medical office supply and ongoing population growth, driving durable leasing momentum.
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