Cypress West Partners Acquires Phoenix MOB, Adding to AZ Portfolio
Rancho Santa Margarita, CA (October 22, 2020) — Cypress West Partners, a Southern California-based healthcare investment, leasing and property management firm, has announced the acquisition of two single-story medical office buildings located at 2264 and 26232 North Tatum Blvd in Phoenix. Known as Tatum Highlands Medical and Dental, the buildings, at 87 percent occupied, encompass a 27,204-square-foot medical office and 5,667-square-foot dental office. Tenants include anchor HonorHealth Medical Group along with Desert Sun Pediatrics and Jet Set Smiles Pediatric Dentistry.
Cypress West represented itself in the joint venture transaction with private investors. The seller, a public REIT, was represented by Aaron Kuhl, designated broker, Medical Office Brokers. The terms of the transaction were undisclosed. This transaction marks Cypress West’s 10th acquisition in the AZ MOB market. The firm currently has a total of 10 properties with over 428,000 SF of MOB space located throughout the state.
For Cypress West, Tatum Highlands Medical Building represents the rare opportunity to acquire a high quality medical office building from a REIT. Chris Cumella, partner, Cypress West, said, “We are pleased to push this one across the finish line and continue to build our portfolio in the Arizona market. This asset will provide our investors with a good annual return and an opportunity to create additional value by leasing up the remaining vacant space.”
“Our goal is to build upon what was done by the previous ownership. We will continue to attract high quality medical tenants that are looking for a quality patient experience,” said Jeff Johnson, partner, Cypress West.
Tatum Highlands Medical and Dental is the exclusive suburban medical complex serving the residential communities north of Desert Ridge including Cave Creek. Built in 1998 and 2000, the properties are leased to medical and dental professionals with a majority of tenants that have occupied the building for more than five years. There are 90,000 residents within five miles along with a median household income of $112,000. The local population is expected to grow 7.91% over the next five years.