Cypress West Partners announced the start of construction for its latest Class A medical office development in Queen Creek, ranked as the third-fastest growing city in the U.S. according to the Census Bureau.
Located at the intersection of Signal Butte and Ocotillo roads, the new 22,000-square-foot, single-story building is just two miles south of the new State Route 24. Construction is expected to be completed by the third quarter 2023 with tenant move in late 2023. The property is the only off-campus for lease medical office building in the Town of Queen Creek. Cypress West acquired the 2.5-acre parcel at the end of last year.
According to Jason Anzalone, managing director of development at Cypress West Partners, the new building, named Ocottillo Medical Collaborative, was 87% leased prior to start of construction to a mix of service oriented medical tenants. Negotiations are underway for the remaining space within the building.
“Medical office is not immune to global economic conditions and volatility, but we’ve seen that the product type remains a fundamentally strong asset class. While there is an unfolding reset of the valuation landscape, the fundamentals should continue as capital continues to be selective on deployment strategies. The demand we’ve seen for medical office space in Arizona, for example, is proof that this product type when developed to such quality will remain sought-after,” Anzalone said. “It’s exciting to be part of the tremendous growth occurring in Queen Creek and to provide vital medical services needed by the community.”
The Cypress West Partners portfolio includes close to 2 million square feet of medical office properties located across the U.S, including more than 250,000 square feet of medical office properties currently in various stages of development.
For its Queen Creek property, Cypress West’s team includes Campbell Development (general contractor), Dalke Design (project architect), Civil & Environmental Consultants (civil engineer) and Design Ethic (landscape architect). Mark Haslip at Menlo Group has managed the leasing efforts to date.
Based in Southern California, Cypress West Partners was formed through strategic affiliations with the purpose to acquire, develop and manage healthcare properties on a national basis. The firms align with like-minded project partners and implements with the highest level of real time, real estate experience and knowledge in the marketplace. Learn more at cypresswestpartners.com.
