1841 N 24th St - Office FOR SALE


Phoenix, AZ 85008
$7,792,500 USD
480-220-2674
1841 N 24th St, Phoenix, AZ for Sale
$7,792,500 USD
Office - FOR SALE
1/29
null | 6.5% Cap Rate

1841 N 24th St
Phoenix, AZ 85008


HIGHLIGHTS

  • Single Tenant NNN Investment Opportunity
  • Long Term Lease Expiring in 12/2033
  • Inflation Proof with 3% Annual Increases
  • Highly Profitable Tenant in Growing Industry
  • Top Performing Location within the Phoenix Market
  • Highly Specialized Licensing Not Easily Obtained or Transferred

OVERVIEW

SVN is pleased to present to the market this prime investment opportunity in Phoenix, AZ, featuring an NNN lease. The lease commenced in January 2023 and expires on December 2033, with 3% annual increases, making it ideal for investors seeking low-maintenance, long-term income. Landlord responsibilities are limited to the roof, exterior walls, and structure of which all expenses are at the expense of the tenant. The sole tenant is Purpose Healing Center, a leader in the behavioral healthcare industry. Purpose Healing Center was formed in 2017 and provides a wide range of treatments and therapies to its patients. This particular location, consisting of a total of 68 beds, underwent a full renovation in 2021 and includes specialized licensing including behavioral health subacute inpatient care (32 beds), behavioral health residential facility (36 beds), and an outpatient treatment center. It's this licensing that makes this location so desirable for this particular business as it's not easily obtainable or transferrable. Additionally, as part of their roughly $4MM investment into the property, Purpose Healing installed new updated plumbing and electrical, a new roof, and new AC units, and fully renovated the interior of the property, thus creating a much higher likelihood the tenant will remain at this location for many years. The behavioral health and addiction recovery sector is witnessing unprecedented growth, driven by increasing awareness of mental health issues, changing societal attitudes, and the ongoing crisis involving substance use and recovery. With more individuals spanning all demographic backgrounds being diagnosed with mental health conditions combined with increasingly more federal and state government funding and insurance coverage available, the demand for these services is projected to be in demand for many years to come. Purpose Healing Center has three locations throughout the Phoenix market. 2024 YTD annualized gross revenues is tracking at $21MM, a ±27% increase from 2023. Of the three locations, this Phoenix location accounts for ±42% of the company's gross revenue making it a critical component of the operations of the business.

FOR SALE DETAILS

PRICE

$7,792,500 USD

PRICE/SF

$475 USD /SF

CAP RATE

6.5%

% LEASED

-

TENANCY

Single

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

24th Street Conference Center

PROPERTY TYPE

Office

ADD'L SUBTYPES

Medical

TOTAL BUILDING SIZE

-

STORIES

1

BUILDING CLASS

B

YEAR BUILT

1975

SPRINKLERS

-

PARKING SPACES

73

LAND DETAILS

LAND ACRES

1.19 AC

LAND SF

51,836 SF

ZONING

C-2, Phoenix

APN/PARCEL ID

120-39-086E

ASK ABOUT THIS PROPERTY

Justin HorwitzSVN | Desert Commercial AdvisorsMore Info
480-220-2674

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Justin HorwitzSVN | Desert Commercial AdvisorsMore Info
480-220-2674

By clicking the button, you agree to Showcase's Terms of Use and Privacy Policy.