Lincoln, PGIM launch Phoenix healthcare investment push

Article originally posted on CoStar on September 17, 2026

Two national firms partnered to purchase a Phoenix ambulatory surgery center as they expand their national healthcare real estate investment platform.

A joint venture between Lincoln Property Co. and PGIM acquired the Surgery Center of Gilbert at 6003 E. Baseline Road in Mesa for $10.68 million.

The acquisition serves as the entry point into Phoenix’s healthcare real estate market for Lincoln and PGIM’s platform. It “puts a flag in the ground” and positions the partnership to expand in Phoenix, Alastair Barnes, Lincoln’s vice president of healthcare investments, told CoStar News.

The 13,957-square-foot center is operated by a partnership of Banner Health, Atlas Healthcare Partners and physician surgical partners. The center has five operating rooms, six pre-op rooms and multiple post-anesthesia care units.

“The acquisition allowed us to establish a relationship with Banner and Atlas, which should be super helpful as we look to scale in the market,” Barnes said.

Lincoln’s healthcare division has operated primarily as a service business for decades. The firm’s joint venture with PGIM marked its first attempt to build a national investment platform at scale, Barnes said.

Barnes said the two firms came together about two years ago to kick off pursuit of a nationwide investment platform.

Beyond the newly acquired surgery center, the partnership has purchased two outpatient medical buildings totaling 104,000 square feet in Dallas and an ambulatory surgery center in Palm Beach Gardens, Florida.

Barnes said Phoenix has been an attractive market for some time, but that has made it “difficult to break into.” He attributes that to Phoenix’s population and economic growth, which typically leads to rent gains.

The medical sector accounts for the bulk of Phoenix’s 1.4 million square feet of new office building pipeline under construction. The segment has shown greater resiliency compared with traditional office use, according to CoStar analytics.

U.S. medical outpatient investment volume reached $6.7 billion in the first half of 2026, up 21% year over year, driven by a surge in portfolio deals and a 42% increase in single-property sales, according to Cushman & Wakefield’s MOB [medical outpatient building] Capital Markets Midyear Update.

Barnes said it’ll be easier to scale buying larger medical office buildings, but acquisitions like the Surgery Center of Gilbert offer diversification.

“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 Real Estate’s investment group, in a statement.