On-campus medical property sells for $13.5M

PHOENIX, Jan. 17, 2024 –  JLL Capital Markets announced today that it arranged the $13.5 million sale and the $10.1 million acquisition financing for a mission-critical, on-campus medical property, Thunderbird Medical Pavilion, totalling 92,811 square feet. The property is located at 5757 Thunderbird Rd., Glendale, Arizona.

JLL represented the seller, Banner Health, and procured the buyer, UDLR Healthcare. JLL also represented the buyer and borrower, UDLR Healthcare, in obtaining acquisition financing.

Thunderbird Medical Pavilion hosts a diverse set of clinical users including imaging, cardiovascular surgery specialists, general surgery specialists, ear nose and throat physicians, and obstetrics/gynecology. Banner Health is the largest tenant in the building and is accompanied by other dominant, local physician groups. The property is 50 percent leased with 7.3 years of remaining lease term. New ownership has devised a strong business plan to attract new tenants to the property to support the growth of healthcare services offered on the medical campus.

Thunderbird Medical Pavilion is the only medical office building that is investor-owned on the campus of the 595-bed Banner Thunderbird Medical Center. Banner Thunderbird is one of Banner’s largest and most profitable hospitals in the Phoenix area and is the dominant inpatient provider in a 10-mile radius.

The JLL Medical Properties Group Investment Advisory Sales team was led by Senior Managing Director Mindy Berman, Executive Managing Director Pat Williams, Director Matt DiCesare and Associate Liam Sorensen. JLL Medical Properties Group Debt Advisory team was led by Senior Managing Directors John Chun, Directors Anthony Sardo and Daniel Digerness and Associate Liam Sorensen.

"Thunderbird Medical Pavilion is a unique on-campus investment opportunity for discriminating owners of medical properties," said Berman. "The property’s close association with Thunderbird Medical Center in a prime Phoenix location will allow for an aligned strategic partnership between the new landlord and Banner in the quest to build on existing services at the campus and increase occupancy in the building.”

“The growth in patient demand for healthcare services at this campus is high,” said Troy Freeman, VP of Real Estate at Banner Health. “UDLR’s business plan will help advance this prime real estate to the next level, further supporting the mission of Banner Thunderbird and surrounding clinical locations on the campus.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Banner Health is one of the largest, secular nonprofit health care systems in the country. In addition to 33 hospitals, Banner also operates an academic medicine division, Banner – University Medicine, and Banner MD Anderson Cancer Center, a partnership with one of the world’s leading cancer programs, MD Anderson Cancer Center. Banner’s array of services includes a health insurance division, employed physician groups, outpatient surgery centers, urgent care locations, home care and hospice services, retail pharmacies, stand-alone imaging centers, physical therapy and rehabilitation, behavioral health services, a research division and a nursing registry. To make health care easier, 100% of Banner-employed doctors are available for virtual visits and patients may also reserve spots at Banner Urgent Care locations and can book appointments online with many Banner-employed doctors. Headquartered in Arizona, Banner Health also has locations in California, Colorado, Nebraska, Nevada and Wyoming. For more information, visit bannerhealth.com.

UDLR Healthcare’s mission is to become a leading innovator, investor, and operator in medical outpatient real estate. UDLR aims to create alignment across all sector stakeholders by creating a real estate experience that adds value for patients, physicians, and health systems. The UDLR team utilizes data driven analysis and a deep understanding of value creation for MOB stakeholders to provide innovative real estate solutions to healthcare providers and patients. ​

UDLR was jointly founded by two leaders in their respective sectors – GI Partners, a leading private alternatives investment firm with a track record of launching and scaling investment platforms in specialized sectors, and a team of former executives from Healthcare Trust of America (HTA), the largest integrated owner and operator of MOBs in the United States prior to its sale in July of 2022.

Founded in 2001, GI Partners is a private investment firm with over 150 employees and offices in San Francisco, New York, Dallas, Chicago, Greenwich, Scottsdale, and London. The firm has raised more than $42 billion in capital and invests on behalf of leading institutional investors around the world through its private equity, real estate, and data infrastructure strategies. The real estate strategy focuses primarily on specialized real estate, including technology, sciences, and healthcare properties. The private equity team invests primarily in companies in the healthcare, services, and software sectors. The data infrastructure team invests primarily in hard asset infrastructure businesses underpinning the digital economy. For more information, please visit gipartners.com.