JLL Income Property Trust, an institutionally managed daily NAV REIT with more than $6.3 billion in portfolio assets announced the acquisition of the Sugar Land Medical Plaza, a newly constructed, Class A, 37,000-foot medical office property located in the affluent Houston suburb of Sugar Land, Texas. The purchase price was approximately $18.4 million.
“Healthcare-oriented properties continue to be our focus within the office sector given the favorable underlying fundamentals driving long-term tenant demand,” said JLL Income Property Trust President and CEO Allan Swaringen in a statement. “Sugar Land Medical Plaza fits squarely within our thesis of investing in well-located, state-of-the-art medical office buildings with specialty healthcare tenants that have long-term commitments to the property through their buildouts and leases. The shift towards outpatient, standalone surgery centers as an alternative to traditional hospital settings, combined with the continued aging of our population positions healthcare-oriented real estate as an attractive addition to our stable value, income-oriented portfolio.”
Houston ranks as the fourth largest city in the US along with one of the youngest, fastest growing populations with 2 percent annual population growth over the past ten years as compared to the national average of 0.8 percent. It is also home to the largest medical complex in the world, the Texas Medical Center. Sugar Land is 20 miles southwest of Houston and boasts five hospitals within a three-mile radius of Sugar Land Medical Plaza.
Completed in 2020, the two-story property is fully leased to a diversified roster of leading healthcare providers. The property includes a surgery and imaging center, and a full diagnostic suite including the newest MRI, CT, ultrasound and X-Ray machines. The weighted average lease term of the property is greater than nine years.
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 percent of its overall portfolio.
