Medical economy, building upgrades draw buyer to Mesa, Arizona office asset
JLL completes the $10.06 million sale of a Class A office building located at Higley & Baseline
PHOENIX, March 20, 2019 – On behalf of James Greaves with G2 Capital, JLL has completed the $10.06 million sale of 5416 E. Baseline Rd., a two-story, 63,834-square-foot Class A office building located within Inverness Commons Business Park, in the hub of Mesa, Arizona’s booming Higley Road medical corridor. Submarket stability, combined with recent and extensive renovations, have the building 92 percent leased to a broad base of tenants.
JLL Senior Vice President Brian Ackerman represented G2 Capital in the transaction. The buyer is Minnesota-based Founders Properties LLC. JLL Managing Directors Mark Gustin, Karsten Peterson and Dave Seeger are the building’s exclusive leasing brokers.
“There is exponential growth happening along the Higley Road corridor – both in the medical arena and through non-competing new developments that are adding retail, restaurant, residential and hotel services,” said Ackerman. “G2 Capital recognized the long-term potential of this growth and, through renovation, has established this building with a very strong tenancy and cash flow that will serve it well in the years ahead.”
The 5416 building is located on Baseline Road, just east of Higley Road and immediately south of the US 60 freeway. A recent $2.3 million building renovation improved the property with new lobbies, upgrades to hallways and tenant spaces, new landscaping and a new parking lot offering a parking ratio of 5.86/1,000.
The building is 92 percent occupied with an average lease term of over five years. Acumen Fiscal Agent LLC and Ring Inc., owned by a Fortune 10 company, are the project anchors. Other tenants include Sharecare Health Data Services LLC, Fairway Independent Mortgage Corporation, Confident Financial Solutions and Cardiovascular Associates of Mesa.
Two additional vacant suites are available within the building, totaling 2,231 and 2,024 square feet. Both have been newly renovated and are move-in ready.
“All interior spaces allow for a creative build-out with 12-foot ceilings and an open-air environment,” said Ackerman. “That is something that is not achievable at many nearby office buildings and is a huge benefit for tenants wanting this type of modern workspace.”
The 5416 building sits within a major medical node and employment hub that includes Banner Gateway Hospital, Banner MD Anderson Cancer Center, Davita/Southwest Kidney Dialysis and the Arizona Health and Technology Park, home to A.T. Still University’s Arizona campus. Other new area developments include Fry’s Marketplace, Hilton Garden Inn and Conference Center, Savanna House senior living center and The Highland Retail Plaza, which includes a recently delivered Starbucks, Popeyes, Rudy’s Bar-B-Q, Circle K and Del Taco.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 90,000 as of December 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com