Anchor Health Properties, in a joint venture with its newly formed Chestnut Healthcare Fund II, has purchased The Parkway, a 129,000-square-foot medical office building located in the greater Summerlin submarket of Las Vegas, in an off-market transaction.
The buyer paid $45.6 million or $350.8 per square foot for the Class A property, public records show, financing the deal with a note from Capital One. According to CommercialEdge data, the previous owner was Stable Development, which had acquired the asset in 2014 for $18.2 million.
The transaction doubles Anchor’s Las Vegas footprint, bringing it to more than 242,000 square feet. CommercialEdge shows the company owns two additional medical office assets in the metro, totaling 112,435 square feet, one of which is also located in Summerlin.
“Health-care real estate is relationship-focused and the successful closing of the Parkway MOB emphasizes the ownership-mentality and dedication adopted by our investments team. As we continue to source and execute on top quality off-market transactions in high barrier to entry markets nationwide, these established relationships coupled with our team’s ability to tailor optimal solutions to cross the finish line will help us navigate the competitive HRE investments landscape,” CIO & Managing Partner James Schmid told Commercial Property Executive.
Schmid also said in a prepared statement that Anchor had pursued the acquisition of this asset for more than 5 years. He noted that almost all of Anchor’s 2021 purchases closed via off-market or lightly marketed processes. In July, the company added 210,000 square feet to its national portfolio in such separate transactions valued at a total of more than $100 million.
Completed in 2004 and renovated in 2015, the four-story building sits on a 5-acre parcel at 7455 W. Washington Ave. The property was fully leased at the time of sale, having Nevada Orthopedic & Spine Center and LMC Pathway Solutions as anchor tenants. Services provided include orthopedics, pain management, imaging, cardiology, physical therapy, primary care and pediatrics, as well as sleep medicine and hormone therapy, among others.
Situated near the intersection of Summerlin Parkway and Buffalo Drive, the medical facility is roughly 7 miles west of downtown Las Vegas and 3 miles south of Mountain View Hospital.
Low transaction activity
Although medical offices still make for solid investments, only a few assets have traded in Las Vegas since the beginning of 2021. According to CommercialEdge, the Parkway was the largest of the three medical office buildings that changed ownership year-to-date across the metro.
However, the Washington Avenue property was not the priciest in terms of dollar per square foot. Instead, an 89,000-square-foot medical office asset in Henderson, Nev., tops the list. AEW Capital Management acquired Parkway Medical Plaza in August for $41.3 million or $464.3 per square foot.