A significant transaction during Q4 2024 was of Palo Verde Behavioral Health Campus, a 76,770 square-foot (SF) behavioral health hospital and medical office building located at 2695 N. Craycroft Rd in Tucson, AZ. UHS of Tucson, LLC acquired the property from TMC Holdings, Inc. for $19.07 million. Representing the seller was Richard M. Kleiner, MBA, Principal and Office Specialist with Cushman & Wakefield | PICOR, alongside Travis Ives from Cushman & Wakefield’s Healthcare Capital Markets Team.
The Palo Verde Behavioral Health Campus is strategically located in the Tucson Medical Center campus, spanning 7.65 acres. The facility includes a main building, a south wing, and an office/storage building. This property offers plenty of space for current operations and potential future development.
One of the key strengths of this investment is its 100% occupancy by two primary tenants contributing to the property’s stability and value:
Universal Health Services (UHS: 56,683 SF): one of the nation’s largest and most respected providers of hospital and healthcare services. UHS operates Palo Verde Behavioral Health (PVBH), which has been serving patients in and around Tucson since 1960. PVBH offers individualized inpatient and intensive outpatient treatment programs for adults and adolescents, specializing in mental health and substance use treatment.
TMC for Seniors (6,229 SF): offers free programming to the Tucson community, including wellness education, socialization opportunities, exercise, and support groups. Their services aim to empower aging adults with information to make informed decisions and maintain a high quality of life.
The sale of Palo Verde Behavioral Health Campus demonstrates the strength of the healthcare commercial real estate in the Tucson market. The property’s prime location on the TMC campus, combined with its roster of established healthcare tenants, positions it as a stable and attractive investment. As Tucson’s healthcare sector continues to evolve and grow, properties like this, offering a mix of specialized services and strong tenant profiles, are increasingly sought after by investors looking for stable, long-term assets.
For more information, please contact Richard M. Kleiner at rkleiner@picor.com or +1 (520) 546 2745.
