Dignity Health Arizona General Hospital - Laveen

 

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Dignity Health – Arizona General Hospital Laveen offers investors the opportunity to acquire a modern fully-equipped micro-hospital located in a rapidly growing area in Phoenix, AZ, the capital and most populous city of Arizona. The Hospital is 100% leased and operated by Dignity Health (Fitch A-) and offers the same level of care that can be found in a traditional hospital.

The multi-specialty Hospital and emergency care center features two (2) advanced operating suites for inpatient and outpatient surgical procedures, sixteen (16) inpatient rooms, ten (10) emergency room beds, two operating rooms, a 24/7 emergency department, as well as a full onsite laboratory and radiology suite that includes a 64 slice CT scan, x-ray and ultrasound capabilities.

Located in Laveen Village, within the city of Phoenix, the Hospital is well-located eight (8) miles southwest of Downtown Phoenix, and is situated in a strong and growing population base. With an estimated population exceeding 5 million people in the Phoenix metropolitan area (10th largest in the U.S.), Laveen Village has experienced a 65% increase in population since 2010, while the overall MSA experienced a 22.4% increase.

The Hospital is operated by a wholly owned subsidiary of Dignity Health and the lease is guaranteed by Dignity Health (Fitch A-), a California non-profit benefit corporation generating over $10.8 Billion in 2023. Dignity Health merged with Catholic Health Initiatives in 2019 to come together as CommonSpirit Health, creating a $29 billion system which now operates more than 700 care sites and 142 hospitals in 21 states.

As a licensed acute care hospital and micro-hospital, the Hospital offers patients easier and more convenient access to the same level of care found in a traditional hospital, and with reimbursement rates the same as larger acute-care hospitals. As part of the Dignity Health network in Arizona, patients have access to Dignity Health’s award-winning comprehensive care with six (6) acute care hospitals, including four (4) in Maricopa County, as well as imaging centers, clinics, specialty hospitals, physician groups, urgent care centers, and other clinical partnerships.

 
 
 

Property Highlights

 
 
 
 
 
 
 
 
 
 

 Investment Highlights

Modern State-of-the-Art Micro-Hospital 
Completed in 2014 as a build-to-suit, the Hospital includes 16 inpatient rooms, two state-of-the-art operating rooms, a 24/7 emergency department, onsite laboratory, and a full radiology suite offering the latest digital technologies.


Investment Grade Credit 
The lease is guaranteed by Dignity Health (Fitch A-), a California non-profit benefit corporation with revenue of over $10.8 Billion in 2023.


Long-Term Lease 
10.8 years remaining of the initial 20-year lease term with 2% annual base rent escalations.


Absolute Triple-Net Lease 
The lease structure is highly passive and landlord friendly, with tenant responsible for all costs related to repair, replacement, maintenance, and management of the building.


2nd Largest Non-Profit Health System 
Dignity Health merged with Catholic Health Initiatives in 2019 to create CommonSpirit Health, a $29 billion system with more than 700 care sites and 142 hospitals in 21 states.


Attractive Renewal Options 
Tenant must provide one (1) year notice of its election to exercise each of the five (5) year option periods with Base Rent reset at FMR but in no event less than the prior year’s Base Rent.

 

 

Confidential Offering Memorandum

 

 

Inquiries

 

Christopher L. Stai, CPA
Managing Director

(480) 433-3494
cstai@HealthcareREA.com
CA Broker License #: 01836740
NC Broker License #: 337848

Mike Spisak
Director

(503) 858-8764
mspisak@HealthcareREA.com
CA License #: 02003307

Ryan V. Michaels
Senior Associate

(760) 815-0421
rmichaels@HealthcareREA.com
CA License #: 02132328