9,100 SF NNN MEDICAL OFFICE - SELLER CARRYING $1,225,000 - NATIONAL DERMATOLOGY TENANT
Two things make this deal, and I am putting both at the top.
First, the leases are NNN. Tenants carry taxes, insurance and maintenance. You are not the one writing the check when a compressor goes down or the tax bill lands. On a 9,100 square foot medical campus with an $18,869 annual tax bill, that structure is worth real money every year you own it.
Second, the seller will carry $1,225,000. Entry is $1,100,000. You are getting into a Mesa medical office campus with roughly 47 percent down and no bank underwriting you for eight weeks and then declining.
The capital work is already done. Roof is three years old. All newer AC units. New asphalt across a 66 space lot. New paint, lighting and signage. Roof, HVAC and asphalt are the three line items that gut a commercial pro forma in the first five years, and every one of them has been addressed.
THE ASSET
Address: 1818 E Baseline Rd, Mesa, AZ 85204
County: Maricopa
Property Type: Office, Medical subtype
Building Class: B
Building Size: 9,100 SF across two buildings
Lot Size: 1.25 acres
Year Built: 1996
Construction: Brick exterior
Zoning: C-N, Neighborhood Commercial
Parcel Number: 139-09-003-A
Parking: 66 spaces, 7.25 per 1,000 SF leased
Water and municipal sewer
HOA: None
Annual Property Taxes: $18,868.90, tenant recoverable under NNN
Lease Structure: NNN
TENANCY AND INCOME
Pinnacle Dermatology Management LLC - 4,800 SF - $8,064 per month - lease term through 11/30/2026
Second tenant - $5,535 per month - lease term through 10/31/2028
In-place rent: $13,599 per month, $163,188 annually.
Pinnacle Dermatology Management is a multi-state dermatology platform. A regional healthcare operator anchoring more than half your building is a different credit profile than a single-practitioner local tenant, and it is the kind of tenancy that survives a soft office cycle.
Rent roll and trailing financials provided to us are dated March 2024. Current lease status, renewal status and current rents are to be verified directly through lease review. The Pinnacle lease term shown runs through November 2026 and any buyer should confirm renewal status as a condition of proceeding.
THE RETURNS
Total Consideration: $2,325,000
In-place gross rent: $163,188 annually
NNN structure, with taxes, insurance and maintenance recoverable from tenants
Run your own normalized NOI off the lease file and your own expense assumptions. A buyer taking in-place rent against recoverable operating expenses and a market management load lands in the mid six cap range at this structure. Confirm it yourself. Do not take my arithmetic as your underwriting.
THE STRUCTURE
Entry: $1,100,000
Seller Carry: $1,225,000
Total Consideration: $2,325,000
Illustrative debt service on the carry at 7.00 percent fixed, 30 year amortization:
Principal and interest: approximately $8,150 per month, $97,800 annually
Rate, term, amortization, balloon and prepayment provisions are subject to negotiation with the seller and have not been finalized. Existing financing on the property and the seller carry's lien position are to be confirmed in writing before any buyer proceeds. Verify all figures with your own lender, CPA and insurance broker.
RECENT CAPITAL IMPROVEMENTS
Roof: 3 years old
HVAC: all newer units, packaged system
Parking lot: new asphalt
Interior and exterior paint, lighting, signage
BUILDING FEATURES
Modern suites with glass offices, reception areas, break rooms, ADA compliant restrooms, 24 hour access, fenced lot, building and monument signage, wheelchair accessible, central heating and air conditioning, recessed lighting, drop ceiling, natural light, Wi-Fi, plug and play condition.
LOCATION
Baseline Road in Mesa, minutes from freeway access and surrounding retail, sitting near the East Valley medical corridor. Healthcare tenants cluster deliberately for referral proximity, and they renew when they get it. That is the quiet reason medical office holds occupancy through cycles that hollow out general office.
EXIT AND HOLD STRATEGIES
Buy and hold: NNN medical office with recent capital improvements and minimal landlord responsibility
Seller finance entry: Into a $2.3 million commercial asset with $1.1 million and no bank
Refinance play: Season the asset, then refinance the carry into conventional commercial debt
Owner user plus income: A practice occupies one suite while the other tenant carries the building
Value add on rollover: Mark rents to market as leases roll in a corridor where medical demand is durable
DEAL TERMS
Entry: $1,100,000, seller carry $1,225,000
EMD: contact for terms
COE: contact for terms
Title: contact for details
Access: by appointment, tenant occupied
Proof of funds required before the lease file and financials are released
WHOLESALE AND DISCLOSURE
JNA Dynamic Holdings LLC is not the record owner of this property. We hold or are in the process of holding an equitable interest in the property under a purchase and sale agreement, and we are marketing that equitable interest for assignment. We are not a licensed Arizona real estate broker or salesperson and we are not acting as an agent for the seller or for any buyer. This is an assignment of an equitable interest in a real estate contract, not a listing of the real property itself.
The property is tenant occupied. Do not contact tenants directly. All showings are coordinated through JNA Dynamic Holdings by appointment.
Rent roll and operating figures above are taken from documents provided by the seller dated March 2024 and have not been independently verified. Lease structure, reimbursement obligations, current occupancy and renewal status are to be confirmed through lease review. Buyer to do their own due diligence on condition, square footage, lease terms, tenant creditworthiness, rent roll accuracy, operating expenses, existing financing and lien position, zoning and permitted use, title, environmental condition and value.
THE CALL
Mesa medical office, two buildings, 1.25 acres, NNN leases, new roof and HVAC, a national dermatology tenant anchoring it, and a seller carrying $1,225,000.
Bring proof of funds and I will get you the lease file.
