Meridian, a full-service real estate developer and owner of medical real estate, is pleased to announce that the firm has closed escrow on the purchase of a vacant 94,569-square-foot medical building in Tucson, Arizona, located at 4888 N. Stone Avenue on a 9.27-acre parcel. The sale price was $8.05 million. The property will be fully occupied by El Rio Health, a Federally Qualified Health Center (FQHC) that has provided comprehensive, accessible, and affordable healthcare to the Tucson community for 54 years.
Meridian is recognized nationally for its expertise in repositioning defunct buildings into high-performance medical properties. Meridian plans to invest significant capital into renovations and upgrades immediately. The former inpatient cardiovascular hospital, which has been vacant for 15 years, will be converted into a state-of-the-art health center. In addition, the project plans to install Class A custom tenant improvements that are fully designed to meet El Rio Health’s service line needs. Construction is estimated to begin later this month, with completion anticipated in early 2026.
“El Rio Health was looking for a strategic solution to address the growing demand for primary healthcare services in Tucson,” said Sheila Schmidt-Turkington, Managing Director of Strategy and Development at Meridian. “We were thrilled to work with El Rio leadership and their broker, Rick Kleiner, Principal, Cushman & Wakefield | PICOR, to identify a location that was already entitled for medical use for speed to market. This location is strategically positioned to increase access to care for El Rio Health’s patient base.”
Schmidt-Turkington added, “Early collaboration with El Rio Health and Cushman & Wakefield | PICOR enabled Meridian to negotiate a favorable purchase price and ensure a turnkey construction solution. The deal structure provides a flexible option for El Rio Health to own the real estate, granting them financial flexibility customized to meet their needs. This approach mitigated capital constraints while positioning El Rio Health for further growth in Tucson. It’s truly an honor to help El Rio Health realize its ambulatory goals. El Rio provides care to 1 in 9 people in Tucson.”
The central utility plant has not been functional for many years, so Meridian will decommission the outdated equipment and install new systems tailored to El Rio Health’s specific needs. The building will also feature a new parking lot to provide five spaces for every 1,000 square feet, plus new water-efficient landscaping. Additionally, it will receive a new roof, HVAC units, boilers, and fire sprinkler system. The interior will be completely demolished to a cold shell, allowing for an entirely new code-compliant, energy-efficient facility designed to maximize patient experience and throughput. This revitalization will provide El Rio Health with a modern, functional, and patient-centric environment that enhances both care delivery and operational efficiency.
“El Rio Health is a trusted healthcare provider in Tucson,” said Meridian CEO, Mike Conn. “They have served the community for over 50 years, currently operating 14 health centers and providing care for more than 128,000, approximately 10% of Tucson’s population. This new facility will enable El Rio Health to expand services and meet the increasing demand for timely healthcare access. We could not be more excited to work with a non-profit organization that aligns so perfectly with our own mission – to provide greater access to care at a more affordable cost.”
“We are thrilled with Meridian’s ability to deliver a facility that meets our current needs and future growth plans,” said Clinton Kuntz, DBH, CEO of El Rio Health. “This new location is ideally situated to serve patients from multiple Tucson areas while alleviating capacity stress at our current Prince Road health center. We intend to offer a full range of our service lines at this location, including primary medical, dental and behavioral health care, pharmacy, radiology, specialized care and support services. This partnership ensures we can continue to meet the growing needs for primary care, and we are eager to begin construction.”
Conn added, “This acquisition exemplifies Meridian’s ability to partner together on real estate challenges with creative solutions that address capital constraints and the urgent need for expanded access to healthcare. Our adaptive reuse approach fosters speed to market at a lower cost, while providing flexible ownership options.”
Rick Kleiner of Cushman & Wakefield | PICOR represented Meridian on the acquisition and El Rio Health on the lease. Vince Femiano and Kate Morris of Transwestern represented the seller, an affiliate of Tenet Health, in the sale.
About El Rio Health
El Rio Health is the largest provider of medical and dental services for the uninsured and Medicaid populations in Pima County. El Rio serves the medical, dental, and behavioral health needs of over 128,000 patients annually. El Rio employs over 1,900 people with an annual budget of over $255 million dollars. A national model of health care excellence, El Rio’s mission is to “improve the health of our community through comprehensive, accessible, affordable, quality and compassionate care.” www.elrio.org.
About Meridian
Founded in 1999, Meridian is a full-service real estate developer and investor specializing in high-quality, brand-enhancing healthcare and life science developments. The firm owns and manages healthcare properties throughout the United States and continues to aggressively pursue acquisitions and developments.
Meridian focuses on solving real estate challenges for healthcare providers and systems, including opportunistic repurposing, value-add, core-plus, and build-to-suit projects across the continuum of care. Additionally, Meridian offers development and construction management services for entities seeking to retain ownership from project inception. Its services are broad in scope but meticulous in detail, covering everything from site evaluation and land acquisition to entitlement, planning, and construction management. For more information, see www.mpcca.com.
