Meridian Repositions and Recapitalizes Historic Medical Office Building in Phoenix

May 9, 2019

Meridian, a full-service commercial real estate developer and owner of medical real estate, is pleased to announce that it has completed the renovation and repositioning of Grunow Memorial Medical Center, a landmark 53,000-square-foot, two-story, medical office building located at 926 East McDowell Road in Phoenix, Arizona. Once the repositioning was completed, Meridian formed a joint venture with Harrison Street, a Chicago-based investment management firm, for the recapitalization of Grunow Memorial Medical Center.

“We are very excited about partnering with Meridian on the ownership of this iconic building,” said Mike Gordon, Senior Managing Director at Harrison Street. “The partnership on Grunow Memorial Medical Center aligned extremely well with our firm’s strategy of investing in high quality healthcare real estate.”

In September 2017, Meridian purchased the then 25 percent leased building located adjacent to Banner Health University Medical Center’s Phoenix Campus and Phoenix Children’s Hospital. The property is now approximately 90 percent leased to 12 tenants, including DaVita Dialysis and a well-known regional infusion group.

“The acquisition of Grunow Memorial Medical Center represented Meridian’s first major transaction outside of California. This repositioning is a great example of how Meridian is leveraging its medical expertise to expand into new markets and solve real estate needs for our clients,” said Meridian’s Senior Vice President Mike Conn. 

“The historic Grunow Memorial Medical Center represented a challenging value-add opportunity where we could assist our clients with their outpatient ambulatory strategy,” Conn continues. “We added fire sprinklers to the entire building, upgraded ADA, replaced the HVAC, reduced the load factor by reconfiguring space, and updated many of the second-generation medical space for our users. We then brought in Harrison Street as a trusted partner to collaborate on the remaining lease-up and ownership of the property.”

Grunow Memorial Medical Center is located in the Coronado Historic District of Phoenix. It was built in 1931 and designed by Arizona architect Lester A. Byron. “Grunow was one of the first clinics of its kind in Arizona where doctors could be located near a hospital,” Conn noted. “It also created the opportunity for patients to see their doctor in more of a suburban setting rather than having to go downtown.”

 

Avison Young Principals Alexandra Loye and Julie A. Johnson, CCIM, from the firm’s Phoenix office, assisted Meridian in both the leasing activities and the recapitalization of the property. “Avison did a great job helping us reposition this project. The building was mostly vacant without much leasing activity prior to our acquisition, and Julie and Alex performed well in helping us stabilize the asset,” Conn noted. KQ Architects assisted with capital improvements and tenant improvement buildouts. 

In Southern California, Meridian also closed escrow on the sale of a repositioned medical clinic in downtown Long Beach. That building was sold as a triple-net-leased investment. Meridian currently owns and manages healthcare properties throughout the western United States.

See the latest posts on our homepage


Share

Topic Area: Press Release


Recent Posts
Recent Posts
Focus: Infection Control

An emergency declaration over Ebola could make things worse


The Ebola outbreak in the Congo is challenging the world's capacity to respond

5/22/2019

DC VA patient escaped psychiatric unit, charged with assault


The U.S. House Oversight Committee has launched an investigation

5/22/2019

Understanding high-efficiency rooftop air conditioning units


Companies nationwide could save roughly $1 billion annually in energy costs by replacing 10- to 20-ton RTUs with units that meet the high performance RTU specification

5/22/2019

Focus: Fire-Life Safety / Column

Regulations, Codes & Standards Q&A: Fire hose valves


Brad Keyes discusses the regulations for fire hose valves

5/22/2019

One third of hospitals earn 'A' in Leapfrog's spring ratings


Of the more than 2,600 hospitals graded, 32 percent earned an "A"

5/22/2019





Post Comment




FREE
NEWSLETTER

News & Updates • Webcast Alerts • Building Technologies

All fields are required.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.