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Single-Tenant Office Medical

Banner Urgent Care

1120 S Gilbert Rd, Mesa, AZ 85204

Listing Price: $2,623,289

Cap Rate
4.50%
Tenant Name
Banner Health
Years Remaining On Lease
3.3
Gross SF
3,400
Guarantor
Corporate Guarantee
Rentable SF
3,400
Price/Gross SF
$771.56
Lease Type
Double Net
Rent Per Square Feet
$34.72

Investment Overview

Marcus & Millichap is pleased to present Banner Health Urgent Care (AA- Fitch), located at 1120 S. Gilbert Rd. Mesa, AZ. The signalized intersection of S. Gilbert Rd & E. Southern Ave has a combined traffic count of 71,615 VPD, the most of any intersection in Mesa, AZ. The Subject property is situated on the northwest corner with a QuikTrip (15-Yr. lease), BlackRock Coffee (15-Yr. lease) and California gym operator, all new to the corner within the last 24 months. The high-traffic, ultralow-vacancy intersection is also occupied by dozens of national retailers and restaurants along with a Target anchored shopping center across the street. The lease is backed by Banner Health (AA- Fitch), one of the largest non-profit health care systems in the country. Headquartered in Phoenix, Arizona, Banner Health operates 30 hospitals in 6 states. Banner Health has annual revenue more than $12 billion and shares the rarefied credit rating of "AA-" with the likes of JP Morgan, Berkshire Hathaway, Samsung & TD Bank. The subject property is strategically centered between dozens of Banner Health run Hospitals, Cancer Centers, Health Clinics, Imaging and specialist, all of which are employees of Banner Health, the largest employee in the state of Arizona. The Urgent Care system serves as a first point of contact "feeder" to the larger Banner network as well as relieving the E.R. and providing convenient and fast care to the community. A tenant since 2010, Banner Health extended the lease for 5 additional years in September of 2021. In 2022, Banner Health has paid for exterior remodeling and is discussing an interior remodel as well. The taxes and insurance are paid directly by the tenant and they reimburse the landlord for all CAM within 90 days of each calendar year. Lease is NN (roof & structure).

Investment Highlights

  • Banner Health Has "AA-" Credit Rating (Fitch) | 2021 Revenue of $12.4 B | 30 Hospitals
  • Largest Employer in the State of AZ | 51,900 Employees | Headquartered in Phoenix
  • Urgent Care Serves Feeder to Larger Network of 5,000 Employed Doctors & Specialist
  • Strategically Centered between dozens of Banner Hospitals, Clinics, Imaging & Specialist
  • Phoenix Has Lowest Retail Vacancy Rate since 2007 | Metro Employment Exceeds 2019 Peak | Household Formation Projected to Grow by Nearly 3x National Pace Through 2030
  • 2021: 2nd Largest Annual Job Gain in past 15-Years | Availability at 15 Year Low
  • Highest Trafficked Intersection in all of Mesa AZ - Over 70,000 Combined VPD | Half Mile North of exit from Hwy 60 With Over 200,000 VPD

Exclusively Listed By

Broker of Record

  • Ryan Sarbinoff

    First Vice President/Regional Manager

    (602) 687-6700

    License(s) AZ: BR675146000

    Arizona

Single-Tenant Office Medical

Banner Urgent Care

Listing Price: $2,623,289

Cap Rate
4.50%
Tenant Name
Banner Health
Years Remaining On Lease
3.3
Gross SF
3,400
Guarantor
Corporate Guarantee
Rentable SF
3,400
Price/Gross SF
$771.56
Lease Type
Double Net
Rent Per Square Feet
$34.72

Investment Highlights

  • Banner Health Has "AA-" Credit Rating (Fitch) | 2021 Revenue of $12.4 B | 30 Hospitals
  • Largest Employer in the State of AZ | 51,900 Employees | Headquartered in Phoenix
  • Urgent Care Serves Feeder to Larger Network of 5,000 Employed Doctors & Specialist
  • Strategically Centered between dozens of Banner Hospitals, Clinics, Imaging & Specialist
  • Phoenix Has Lowest Retail Vacancy Rate since 2007 | Metro Employment Exceeds 2019 Peak | Household Formation Projected to Grow by Nearly 3x National Pace Through 2030
  • 2021: 2nd Largest Annual Job Gain in past 15-Years | Availability at 15 Year Low
  • Highest Trafficked Intersection in all of Mesa AZ - Over 70,000 Combined VPD | Half Mile North of exit from Hwy 60 With Over 200,000 VPD

Investment Overview

Marcus & Millichap is pleased to present Banner Health Urgent Care (AA- Fitch), located at 1120 S. Gilbert Rd. Mesa, AZ. The signalized intersection of S. Gilbert Rd & E. Southern Ave has a combined traffic count of 71,615 VPD, the most of any intersection in Mesa, AZ. The Subject property is situated on the northwest corner with a QuikTrip (15-Yr. lease), BlackRock Coffee (15-Yr. lease) and California gym operator, all new to the corner within the last 24 months. The high-traffic, ultralow-vacancy intersection is also occupied by dozens of national retailers and restaurants along with a Target anchored shopping center across the street. The lease is backed by Banner Health (AA- Fitch), one of the largest non-profit health care systems in the country. Headquartered in Phoenix, Arizona, Banner Health operates 30 hospitals in 6 states. Banner Health has annual revenue more than $12 billion and shares the rarefied credit rating of "AA-" with the likes of JP Morgan, Berkshire Hathaway, Samsung & TD Bank. The subject property is strategically centered between dozens of Banner Health run Hospitals, Cancer Centers, Health Clinics, Imaging and specialist, all of which are employees of Banner Health, the largest employee in the state of Arizona. The Urgent Care system serves as a first point of contact "feeder" to the larger Banner network as well as relieving the E.R. and providing convenient and fast care to the community. A tenant since 2010, Banner Health extended the lease for 5 additional years in September of 2021. In 2022, Banner Health has paid for exterior remodeling and is discussing an interior remodel as well. The taxes and insurance are paid directly by the tenant and they reimburse the landlord for all CAM within 90 days of each calendar year. Lease is NN (roof & structure).

Exclusively Listed By

Broker of Record

  • Ryan Sarbinoff

    First Vice President/Regional Manager

    (602) 687-6700

    License(s): AZ: BR675146000

    Arizona

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