Scottsdale Healthcare buys new headquarters for $14.95M

The Arizona Republic • October 2 2012 –

Scottsdale Healthcare Corp. closed a $14.95 million deal Monday to buy a McCormick Ranch office building for its headquarters.
The three-story building northeast of Via de Ventura and Hayden Road was previously occupied by Medicis Pharmaceutical Corp. until 2008.

Scottsdale Healthcare plans to move its corporate offices into the 74,-474-square-foot McCormick Place building next year but a date has not been set for the relocation, spokesman Keith Jones said.

“It’s going to be nice for Scottsdale Healthcare to have a more efficient corporate headquarters to improve communications between departments and that is more centrally located to our three hospital campuses,” he said.
Scottsdale Healthcare, with about 6,700 employees, has campuses downtown and at 9003 E. Shea Blvd. and 7400 E. Thompson Peak Parkway.
Scottsdale Healthcare’s board approved a letter of intent to buy the 11-year-old building for its headquarters in January.
The seller, an undisclosed northern California real estate investment company, was represented by Jerry Noble, Pat Devine and Greg Mayer of CBRE in Phoenix.

Luke Walker and David Carder of CBRE and Patti Gentry of Arizona Commercial Advisors represented Scottsdale Healthcare in the deal.
The nonprofit healthcare company’s latest acquisition follows a deal it completed in August with HCP Inc., a real estate investment trust based in Long Beach, Calif.

Scottsdale Healthcare sold eight of its medical office buildings for $81 million to HCP but kept ownership of the land underneath those buildings, Jones said.

“Real estate management is not part of our core business,” he said. “The ground lease allows us to control the land over the long term and leverage its value.”

The new headquarters will include the administrative, financial, marketing and public relations employees.

Walker of CBRE said the building price was a little higher than the market average because the previous tenant did expensive improvements to the property, which includes an adjacent parking structure.
The Valley’s vacancy rate for Class A office buildings dropped 3 percentage points to 25 percent during the second quarter, Walker said.

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