Sun Health Campus
Sun Healthcare Campus consist of three (3) separate adjacent Class A Office Buildings totaling 87,209 square feet located in the Journal Center Development in the North I-25 Corridor of Albuquerque. Sun Healthcare was acquired by Genesis Healthcare. As a result of this merger there was a consolidation of offices resulting in a surplus of office space at the campus. Furthermore, Genesis desired to sell its support facilities and deploy the capital into its core business, Senior Care Facilities.
Evaluation of market and financial modeling determined the greatest return would be to consolidate Genesis into one building to be a sale lease back and target selling the two other buildings to end users, opposed to selling the project as a whole value add opportunity. This required a replat of the site, “test fits” to determine which building would best accommodate Genesis needs and construction for the consolidation.
Within fifteen (15) months of the assignment, all three (3) of the buildings were sold in three (3) separate transactions at a combined price more than double that of the estimated price if sold as a single value add property. The owner user properties sold for 20% more than other comparable sales in the Journal Center and the Sale/Leaseback set a record for was the highest price per square foot of any comparable property in Albuquerque. The sales were:
- 5131 Masthead (34,835 rsf) – Owner/User
- 101C Sun (12,000 rsf) – Owner/User
- 101D Sun (40,374 rsf) – Sale/Leaseback