Insight Medical Acquires Tucson Healthcare Campus
Tucson Medical Center anchors the campus.
Insight Medical Realty has acquired El Dorado Medical Plaza, a 182,900-square-foot, three-story healthcare campus in Tucson, Ariz. The property includes medical office space, a surgery center and hospital uses.
The sellers were Meridian, an owner, operator and investor in healthcare real estate, and investor Harrison Street Asset Management. They acquired the property in 2021 from Clarion Properties. A purchase price was not disclosed.
The 11.77-acre campus, located at 1400 N. Wilmot Road, is anchored by Tucson Medical Center and El Dorado Springs Behavioral Health, a Lifepoint Health behavioral health hospital. The property is within a major Tucson medical corridor, which includes TMC’s main hospital campus and St. Joseph’s Hospital.
TMC recently extended its lease and now occupies about 78,000 square feet at the property. The campus supports a range of healthcare services, including infusion therapy, wound care, cardiac rehabilitation, primary care and inpatient behavioral healthcare.
Prior to the sale, Meridian and Harrison Street undertook a number of capital improvements at the property. The work included modernization of the elevators; replacement of major HVAC, central plant and electrical systems; installation of a new fire alarm system and emergency backup-generation capacity and improvements to entrances, parking and exterior areas.
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The sellers also acquired the underlying land interest in the asset, converting the property to fee-simple ownership. Tenants have made additional investments in facility improvements and clinical expansions since 2021.
Andrew Milne, Evan Kovac, Matt DiCesare and Sam Prendergast of JLL’s Medical Properties Group represented Meridian and Harrison Street in the deal, while John Chun and Jarrod Howard arranged financing for the buyer.
Recent healthcare asset deals
Investors are actively seeking healthcare assets nationwide. In September, Inova Health System purchased Willow Oaks Medical Campus, a 382,850-square-foot, two-building medical office property in Fairfax, Va. Stockdale Capital Partners sold the asset for $97.5 million in a deal brokered by Newmark.
Also in September, Healthcare Realty acquired two fully leased medical outpatient properties in Summerville, S.C., along with a development site in Chapel Hill, N.C., from Hammes for $56 million. The two existing properties total about 120,000 square feet.
That same month, Woodside Health acquired Moss Park Medical Center, a two-building, 38,000-square-foot medical office property in Orlando. The investment is part of an ongoing joint venture relationship between Woodside Health and Heitman.
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