Meridian Healthcare Group, Harrison Street Sell El Dorado Medical Plaza in Tucson to Insight Medical Realty
TUCSON, Ariz. — Meridian Healthcare Group and Harrison Street Asset Management have sold El Dorado Medical Plaza, a 182,900-square-foot, three-story healthcare campus at 1400 N. Wilmot Road in Tucson, Arizona, to Insight Medical Realty of Franklin, Tennessee. The sale was announced Nov. 5, 2026. JLL's Medical Properties Group represented the sellers.
El Dorado Medical Plaza Sale: Deal Overview
Meridian, a full-service owner, operator and investor in healthcare real estate, and Harrison Street, an alternative global investment management firm with more than $110 billion in assets under management, announced the disposition. The Class B property includes medical office space, a surgery center and hospital uses on an 11.77-acre parcel.
The campus is within Tucson's primary medical corridor, which includes Tucson Medical Center's (TMC) main hospital campus and St. Joseph's Hospital. It is anchored by TMC and El Dorado Springs Behavioral Health, a Lifepoint Health behavioral health hospital. TMC occupies approximately 78,000 square feet at the property, or about 42.6% of the campus based on the stated building size. The campus supports infusion therapy, wound care, cardiac rehabilitation, primary care and inpatient behavioral healthcare.
Meridian and Harrison Street acquired the property in March 2021 through a joint venture partnership.
Brokers and Financing
JLL's Medical Properties Group represented Meridian and Harrison Street in the transaction. Andrew Milne, Evan Kovac, Matt DiCesare and Sam Prendergast facilitated the sale. John Chun and Jarrod Howard arranged financing for the buyer, Insight Medical Realty.
Capital Improvements and Tenant Strategy
After the 2021 acquisition, Meridian and Harrison Street invested in capital improvements and worked with major tenants on multi-year lease commitments and expansions. The improvements included:
- Modernization of the elevators
- Replacement of major HVAC, central plant and electrical systems
- Installation of a new fire alarm system and emergency backup-generation capacity
- Plumbing upgrades
- Improvements to entrances, circulation, parking, exterior areas and wayfinding
The companies also acquired the underlying land interest, converting the property to fee-simple ownership. Tenants made additional investments in facility improvements and clinical expansions. Meridian, in partnership with Harrison Street, negotiated a lease extension with TMC and supported the expansion of El Dorado Springs Behavioral Health.
Executive Comments
"When we acquired El Dorado in 2021, the uncertainty generated by COVID-19 made for a challenging investment environment, but it also reinforced our conviction in the long-term importance of well-located healthcare real estate," said John Pollock, CEO of Meridian. "We saw an opportunity to acquire a large healthcare campus at an attractive basis and believed that, with significant capital investment and active asset management, we could strengthen the property and create lasting value for both our tenants and our investment partners."
Pollock said the business plan centered on two priorities: "investing in the property itself and strengthening the tenant base." He added that the asset was "a complex asset with a compelling mix of healthcare uses and few directly comparable properties in the market."
Ben Mohns, Global Head of Asset Management – Real Estate at Harrison Street, said: "This transaction reflects our strategy of investing in demographically supported healthcare markets and partnering with leading health systems to own and operate high-quality properties that sustain the delivery of essential medical services."
Tucson Market Context
The sale comes as Tucson's office market is improving. In the third quarter of 2026, overall office vacancy declined to 7.4%, and year-to-date net absorption reached 446,969 square feet. Medical office demand remained strong, with average asking rents of approximately $21.84 per square foot and Class A rents averaging $27.52 per square foot.
Medical properties have continued to attract out-of-state investors, contributing to tightening capitalization rates, particularly for well-located and improved assets.
Sponsor Background and Next Steps
Meridian currently owns and manages healthcare properties throughout the western United States. The company said the sale will allow it to redeploy capital into future healthcare and value-add real estate opportunities.
Harrison Street has acquired 392 healthcare delivery properties across North America since its inception, with a total investment of approximately $9.8 billion. The firm focuses on properties with leading design, technology and energy standards, often working in partnership with health systems.
Sources
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