New trend? HonorHealth sells newly built health property to investment trust

Sonoran Crossing Medical Center.jpg
Posted at 12:29 PM, Sep 30, 2021
and last updated 2021-09-30 19:14:42-04

HonorHealth has sold its newly built medical office building in north Phoenix to a real estate investment trust for $31.75 million, according to Vizzda LLC real estate database.

With the deal closing on Sept. 24, Physicians Realty Trust now owns that 60,000-square-foot building at 33000 N. 32nd Ave., said Kim Post, executive vice president and chief operating officer for the nonprofit HonorHealth.

The sale comes with a 50-year ground lease with two options to extend for 15 and 10 years for a total of 75 years, according to Vizzda. That means Physicians Realty Trust will manage the medical office building while leasing the ground from HonorHealth, Post said.

At 84% occupied, that medical office building sits next to HonorHealth's 224,433-square-foot hospital, called Sonoran Crossing Medical center, which was built last year on 23.08 acres at the northeast corner of Interstate 17 and Dove Valley Road in north Phoenix.

Read more of this story from the Business Journal here.

An earlier version of this article incorrectly reported which property was sold by HonorHealth. Information included in an affidavit included the wrong address and property.