The medical office building (MOB) sector seems to never sleep, as JLL Income Property Trust, an institutionally managed daily NAV REIT with approximately $6.5 billion in portfolio assets, acquired yet another MOB. JLL announced on May 25 that it would acquire Flagstaff Medical Center, a newly constructed, state-of-the-art MOB in Flagstaff, Arizona, for $17.2 million.
According to the LevinPro HC database, this transaction marks the 82nd MOB transaction of the year so far, as well as the 26th transaction of Q2:22. Additionally, this marks JLL’s 7th MOB acquisition of 2022. So far, the REIT has acquired approximately 315,869 square feet for nearly $146.4 million in announced spending.
Flagstaff Medical Center is a single-story building encompassing 26,400-square-foot. The building is fully leased to a leading healthcare provider in the northern Arizona area. The weighted average lease term of the property is greater than nine years.
The Flagstaff Medical Center fits within JLL’s plans of investing in well-located, state-of-the-art medical office buildings through their buildouts and leases. The shift towards outpatient, standalone surgery centers as an alternative to traditional hospital settings, combined with the continued aging population positions healthcare-oriented real estate as an attractive addition to JLL’s stable value, income-oriented portfolio.
JLL Income Property Trust, Inc owns and manages a diversified portfolio of high quality, income-producing residential, industrial, office and retail properties throughout the United States. JLL Income Property Trust’s healthcare allocation is 15 properties totaling more than 1.1 million square feet, valued in excess of $462 million and representing 8% of its overall portfolio.
