9590 E Ironwood Square Dr
Scottsdale, AZ 85258

• Unit Size: 7,784 SF
• Condo Use: Medical Office
• Price: $2,950,000 USD
• Sale Type: Investment
• Price/SF: $378.98 USD

Description

SVN Desert Commercial Advisors is pleased to present, on behalf of the owner this leased investment opportunity located at 9590 E Ironwood Square Dr #120/125. Currently leased to Optum Care on an initial 5-year MG lease, this property is a perfect investment for any investor wanting a quality tenant, in a highly desirable location with potential long-term capabilities and a strong value add component. Currently priced below replacement cost this condo is leased to Optum Care, which is a part of Optum, Inc. a subsidiary of United Health Group, one of the world's largest healthcare organizations. Optum who has occupied the space since 2016 was as 4C Medical Group and at lease renewal converted to a modified Gross style lease. The landlord gets reimbursed for CAM fees, Insurance, and Taxes but is responsible for HVAC. The Tenant, also at lease renewal, deployed their own capital to renovate parts of the property and modernize the space. Further, from a value add standpoint, the lease is currently only observing the property's net square footage, effectively lowering the rent to well below market for a medical property in this part of town and allowing any investor to apply the gross square footage at least renewal and increase the rents to market standards and observe a significant increase in net operating income.

Sale Notes

- Value Add investment in Scottsdale, Arizona near HonorHealth Scottsdale Shea. A major hospital in the immediate area. 
- Extremely Strong Tenant with almost a decade of historical lease term at the property and lease that expires in late 2028
- Optum Care is a division of the United Health Care network. One of America's largest integrated healthcare providers
- Tenant just finished their own TI's in the space after the most recent lease renewal
- Tenant reimburses for CAM, Insurance, and Taxes. Owner is responsible for HVAC
- Office condo property alleviates all exterior maintenance (handled by association) for both the tenant as well as the owner making this an impeccably maintained investment 
- Tenant leases on the usable square footage, not the rentable square footage, providing an owner upside at lease renewal to recapture that unrealized difference.