Edwards Professional Park, Scottsdale, AZ
The Edwards Professional Park I & II medical office project is located adjacent to the Scottsdale Healthcare North Campus. The North Campus is a 433-bed medical center boasting the elite Magnet hospital designation, awarded to the top 5% of hospitals nationwide for quality nursing care. The hospital is a thriving medical and research center in the heart of the city.
We acquired the Edwards project in an “off-market” transaction through our extensive network of brokers. The purchase price was negotiated at an attractive basis, allowing us the flexibility to turn the property around in a short period of time. Attractive fixed-rate financing was secured, with an additional line of credit that was used to pay for tenant improvement and leasing commissions. Believing that the strength of the Scottsdale Healthcare campus would help drive leasing which was only 72% occupied when acquired, we stabilized the occupancy to 95% by late 2006 – two years after our purchase.
Shortly after stabilizing the property, we prepared the asset for sale and engaged CBRE’s West Coast investment sales team in early 2007. The exit price in March of 2007 at $290 per square foot was a record, attributable to the strong leases that were put in place. The asset was sold for $23,700,000 in March of 2007 and our investors were rewarded with a 3.27x cash multiple in just under two and a half years.