Phoenix-based Grunow Memorial Medical Center has been sold for $5 million to commercial real estate developer Meridian, a California company looking to leverage its medical expertise "to expand into new markets," according to a Meridian spokesperson.
The seller was PacVentures, a real estate investment firm based in San Diego, California. The acquisition of Grunow Memorial Medical Center represents Meridian's first major transaction outside of California.
Meridian Senior Vice President Mike Conn said in a statement that the acquisition "gives us a solid value-add opportunity in the Phoenix market where we can improve the property, increase occupancy, and update second generation medical space for tenants that have specific needs."
If Meridian makes any physical changes to the building, it plans on retaining the sense of history that makes it unique. Located in the Coronado Historic District of Phoenix, the building was built in 1941 and features intricate stone carvings that reference symbols of the medical profession. These designs continue throughout the lobby of the building.
Certain changes need to be made, however, to bring the facility up to full compliance with the Americans with Disabilities Act. Meridian will also add new fire sprinklers to the building to accommodate additional uses that currently can't occupy the building.
Meridian has been snapping up medical properties recently. Last week, it closed escrow on a nine-story, 175,000-square-foot office building in Contra Costa County, California. In the last 12 months, Meridian purchased a 115,000-square-foot medical office complex in Los Angeles County for $37.5 million and a six-story, 105,000-square-foot office building in San Mateo County, California for just under $29 million.