By Staff – Phoenix Business Journal Mar 31, 2022
Scottsdale-based HonorHealth and Universal Health Services Inc. are preparing to open a 120-bed behavioral health hospital in Scottsdale.
Via Linda Behavioral Hospital at 9160 E. Horseshoe Road, will open in a phased approach, starting with a 20-bed unit. Built on the Salt River Pima-Maricopa Indian Community, the hospital will provide inpatient and outpatient services for adolescents, adults and older adults.
Louisville, Kentucky-based Stengel-Hill Architecture designed the $39 million project while Redwood City, California-based DPR Construction was general contractor.
This 73,000-square-foot hospital represents the first partnership between HonorHealth and King of Prussia, Pennsylvania-based UHS, which is the majority owner and will oversee day-to-day operations and management of the facility.
• Also in Scottsdale, LifeStance Health’s new 20,000-square-foot corporate headquarters is complete.
Last March, the company announced its plans to move its corporate headquarters to the Valley from Bellevue, Washington.
The headquarters at 4800 N. Scottsdale Road has room to accommodate up to 100 employees. The company currently has 30 employees in Scottsdale with plans to hire more in roles across its corporate functions as the company scales nationwide.
Tempe-based Evolution Design Inc. was the architect and design partner on the tenant improvement project, while Phoenix-based Wespac Construction was the general contractor.
• Over in the East Valley, a joint venture between real estate investment firms Oxford Properties Group and EverWest Real Estate Investors have completed their $46.34 million acquisition of Kitchell’s industrial portfolio near the Chandler Municipal Airport.
All three buildings are along East German Road near the airport. In late 2021, Oxford/EverWest acquired the 800 E. German Road development for $20 million. Then in March, they bought Chandler Airpark, which comprises 148,830 square feet across two buildings.
“Chandler Airpark allowed us to acquire a vacant building with the opportunity to lease, stabilize and hold in a market experiencing exponential population growth and demand,” EverWest Managing Director of Asset Management Amr Ceran said in a statement. “We are extremely bullish on the Arizona market and are pursuing additional acquisitions here in the year ahead.”
Ceran and Erik Good directed the transaction for EverWest. Will Strong of Cushman & Wakefield served as the sales broker.
• North of Phoenix, The Shops at Dynamite Creek, a neighborhood center located at the entrance to Tatum Ranch master-planned community in Cave Creek, sold for $21.95 million. The center is anchored by Ace Hardware and features other tenants such as RE/MAX, F45, State Farm Insurance, HonorHealth and OrthoArizona. The property is located on 9.26 acres at 28242 N. Tatum Blvd. in Cave Creek. The 69,755-square-foot center was 96% leased at the time of the transaction. John Schweikert and Chad Tiedeman at Phoenix Commercial Advisors represented the seller, David Malin of Scottsdale Development Partners, in the deal. The buyer was Shops at Dynamite Creek LLC, an investor based out of Flagstaff, according to county and state records.
• And in an unrelated deal, SouthPark Business Center, an 25,000-square-foot industrial manufacturing building in Chandler sold for $4.08 million to a buyer called 5970 Marion Drive LLC. The building, constructed in 1995, is located at 6145 W. Detroit Street. The seller, Paul & Marilyn Teagle Family Trust, and the buyer were both represented by Jeff Hays from Commercial Properties, Inc./CORFAC International.
• In another deal out of the East Valley, Chauncey Lane Medical Offices, a multitenant medical and office building in north Scottsdale, has sold for $7.85 million.
The seller was Talia Jevan Properties Inc., which was represented in the sale by Cushman & Wakefield’s Eric Wichterman, Mike Coover and Alexandra Loye. The buyer wasn’t immediately available.
Located at 6970 E Chauncey Lane in Scottsdale, the building is 22,214 square feet in a single-story and was 100% leased at the time of sale to a roster including allergy, sleep, posture, kidney, and financial services tenants.
• Over in the West Valley, Chipotle Mexican Grill Inc. submitted site plans to build a location in Goodyear with its new drive-thru model.
Documents submitted to the city in January show that Chipotle plans to build a new 2,305-square-foot location at the Canyon Trails Towne Center near Cotton Lane and Yuma Road.
Its new “Chipotlane” and pickup window does not have an order or pay point like other drive-thru restaurants but will allow customers to order and pay online or through its app and pick up the order at the window.
The owner is listed as TPP 211 Canyon Trails Pads LLC, while the developer is Cotton Development Group LLC, according to the project narrative.
The restaurant will front Cotton Lane and Canyon Trails Boulevard in the shopping center, which has started to see more interest from companies since the city approved a mixed-use project with 284 multifamily units for the property.
Dallas-based TriGate Capital purchased the 500,000-square-foot retail center from Phoenix-based Vestar in 2013 after big-name companies walked away due to the Great Recession.
Documents submitted to the city show that a Starbucks restaurant and drive-thru is also being proposed for the retail center.
Retail leases and sales
Planet Fitness is opening its fourth location in the town of Gilbert in late April. The company will be taking up 17,000 square feet in a newly constructed 30,000-square-foot building in a new shopping center at the corner of Gilbert and Warner roads. Plant Fitness franchisee United PF Partners – the largest franchisee in the Planet Fitness system – is opening the new location and has said it has plans for more gyms in the Phoenix area.
• A 5,000-square-foot property housing a Sun Devil Auto location in Gilbert at 658 South Gilbert Road has been sold for $4.07 million. The buyer was trading out a residential investment property in Southern California and wanted a triple net leased property, said Zack House from Marcus & Millichap’s Phoenix office. House, Mark Ruble and Chris Lind represented the buyer on the transaction.
• Epicenter at Agritopia, the highly anticipated mixed-use community and retail and restaurant destination in Gilbert has signed three more tenants. Retailers Manor apparel, urbAna celebrations store, and Tucson’s Why I Love Where I Live will open at Epicenter in the fall of 2022.
• GOLFTEC, a golf instruction and club fitting company headquartered in Denver, is opening a new location in Phoenix at 3136 E. Indian School Road. The 2,000-square-foot facility will have state-of-the-art simulators for lessons, club fittings and practice.
• The Valley’s latest location of Smoothie King opened this week in Gilbert. A franchisee has leased a space at 5482 S. Power Road in Gilbert.
• Club Pilates is opening a new location at 8738 S. Emerald Drive in Tempe on April 7. The location is owned and operated by Stephanie and Matthew Schissler.