By: Hadden Schifman | Vizzda.com
— Gilbert’s out-patient medical clinic for the Veteran Administration was sold to Dallas-based Fairway Equities for $29,500,000 or nearly $414 per square foot. The newly constructed property was sold by the developer- McShane Development.
Located at 3285 S Val Vista Dr, just Northeast of the 202 & Val Vista Dr in Gilbert, the 2-story medical building totals 71,259 rentable square feet (60,000 usable). Town of Gilbert permits indicate the initial build permit was applied for 11/15/12, with the final permit being issued 3/14/14 (citing 74,086 square feet).
The United States Veteran’s Administration sought development of the facility earlier in September 2011 and awarded McShane the project in April 2012. McShane acquired the 8.867 acres the facility sits on in December 2012 at $8.75 per square foot from the Park Corporation. Associated Bank in Chicago provided construction financing at nearly $28M. The Veteran’s Administration is leasing the property for 20 years at $1.95M annual rent per a release.
Fairway Equities acquired the property with $27,838,106 debt loaned by Wells Fargo as trustee for a lease backed pass-through agreement. The note bears 4.78% interest; maturing ; plus a Junior $1.7M note at 13%.