Investment Overview

Marcus & Millichap is pleased to offer the opportunity to acquire 10117 N 92nd Street, Suite 103, Scottsdale, AZ (the “Property” or “Asset”), a +/- 4,934 square foot class A outpatient ambulatory surgical center (“ASC”) located in North Scottsdale and Paradise Valley’s preeminent medical corridor and adjacent to Honor Health’s Scottsdale Shea Medical Campus. This generational piece of real estate is subject to a NNN lease to Desert Vista Surgical Center, LLC, with +/- 7.7 years of firm term remaining. The lease does not include any rent increases during the firm term, but includes two (2), five (5) year renewal options at the greater of the then previous year’s rent or 95% of FMV, with 3% annual increases throughout the renewal periods. Desert Vista Surgical Center is majority owned by Banner Atlas. Banner Atlas was formed in 2018 as a joint venture between Banner Health and Atlas Healthcare Partners. In May 2022, Banner Health took an additional step of purchasing an undisclosed amount of Atlas Healthcare Partners further emphasizing the success of the partnership and operation. “Based on the significant growth and success that Banner and Atlas have achieved together through our Banner Surgery Center network joint venture, it was a logical next step for Banner to invest in Atlas to help the company scale and grow into a larger national partner for other health systems as well,” said Scott Nordlund, Banner’s Chief Strategy and Growth Officer. “Banner’s decision to invest in Atlas aligns us at the management company level in addition to the regional joint venture and local ASC levels and creates a unique surgery center management company focused on creating strategic partnerships with health systems including ASC network development, investment and operations.”