Lincoln Property Company and PGIM Acquire 13,957-SF Banner-Anchored Surgery Center in Metro Phoenix

Lincoln Property Company and PGIM have acquired Surgery Center of Gilbert, a 13,957-square-foot ambulatory surgery center located at 6003 E. Baseline Rd. in Mesa, Arizona, the firms announced Sept. 9, 2026. The transaction represents the partners' first joint acquisition in metro Phoenix and adds a Banner Health-anchored asset to their growing outpatient medical portfolio.

Property and Tenant Overview

Surgery Center of Gilbert is a purpose-built, single-tenant ambulatory surgery center situated on 1.77 acres in the East Valley submarket of metro Phoenix. The facility is occupied and operated through a partnership of Banner Health, Atlas Healthcare Partners, and physician surgical partners, and is secured by a long-term lease to Banner and its surgical partners.

Banner Health is one of the largest non-profit health systems in the United States, operating a network of more than 20 ambulatory surgery centers across greater Phoenix.

The facility includes five operating rooms, six pre-op rooms, and multiple post-anesthesia care unit rooms supporting phase 1 and phase 2 recovery. A total of 21 medical practitioners work across eight specialties at the center, including general surgery, ophthalmology, plastic surgery, podiatry, ENT, orthopedics, and urology.

Location and Market Context

The property sits within a dense retail and healthcare corridor that draws a daytime population of nearly 280,000 people and is surrounded by more than 124,000 households and 7,500 businesses within a five-mile radius. Nearby anchors include Banner Gateway Medical Center and Banner MD Anderson Cancer Center, supporting patient flow and referral activity in the immediate trade area.

The site offers direct access to the US 60 and Loop 202 freeways, connecting the property to the broader metro Phoenix market.

Strategic Rationale

"Phoenix is one of the most competitive and sought-after medical real estate markets in the country, drawing sustained interest from well-capitalized investors and health systems alike," said John Orsak, executive vice president at Lincoln Property Company. "We are enthusiastic about Lincoln's expanding investment activity in this sector, and we look forward to growing our investment footprint across the region. We have high conviction in Phoenix's fundamentals and the power of Arizona's population growth to power durable demand for specialized outpatient care."

PGIM framed the acquisition around the structural shift of healthcare delivery toward lower-cost, more accessible outpatient settings. "We continue to see compelling opportunities in medical outpatient real estate, supported by the long-term shift of care into lower-cost, more accessible settings and the need for high-quality facilities in growth markets," said Soultana Reigle, head of U.S. equity for PGIM's real estate investment group. "This acquisition reflects our strategy of investing in healthcare assets with strong local demand drivers, durable tenancy and the potential to deliver resilient income through market cycles."

Both firms indicated that metro Phoenix, and the East Valley submarket in particular, remains a high-priority target for additional healthcare real estate investment.

About the Firms

Lincoln Property Company is a privately held real estate firm with more than $31 billion of assets under management. The firm's combined management and leasing portfolio on behalf of institutional clients encompasses more than 720 million square feet of commercial space across asset types including office, multifamily, life science, retail, industrial, data center, healthcare, and mixed-use properties in the United States, United Kingdom, and Europe.

PGIM is the global asset management business of Prudential Financial, Inc., with $1.5 trillion in assets under management as of June 30, 2026. PGIM's real estate investment group manages $217 billion in gross assets under management and administration and maintains a presence in more than 30 cities worldwide. Prudential Financial, Inc. is not affiliated with Prudential plc or Prudential Assurance Company, both incorporated in the United Kingdom.

Sources

• Lincoln Property Company Press Release