Home Alts News JLL Income Property Trust Buys California MOB for $27 Million

JLL Income Property Trust Buys California MOB for $27 Million


JLL Income Property Trust, a non-listed, daily valued perpetual life REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), acquired San Juan Medical Center, a newly constructed, 40,000-square-foot medical office building in San Juan Capistrano, California. The purchase price was approximately $27 million.

San Juan Medical Center is a two-story, medical office building situated on 4.8 acres in Orange County. The property is fully leased with a weighted average lease term of more than 13 years and annual contractual rent increases in excess of 2.75 percent. The building is leased to various tenants including MemorialCare Medical Foundation and Fresenius Dialysis.

“This acquisition represents an excellent continuation of our medical office investment strategy,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “San Juan Medical Center is a purpose-built, long-lease MOB serving the families in San Juan Capistrano and its surrounding communities.”

Swaringen added, “LaSalle Investment Management, our advisor, has a 15-year track record of identifying and executing opportunities in healthcare oriented real estate and this acquisition further complements our stable value and income oriented investment objectives.”

MemorialCare Medical Foundation is a wholly-owned subsidiary of MemorialCare Health System, one of the leading integrated health networks in California. Fresenius Dialysis is a subsidiary of Fresenius Medical Care, the world’s largest provider of services focused on the care of patients with chronic kidney failure.

Jones Lang LaSalle Income Property Trust owns and manages a diversified portfolio of office, retail, industrial and apartment properties located primarily in the United States, and expects to further diversify its real estate portfolio over time, including on a global basis. The company went effective in October 2012 and has raised $723.5 million in investor equity since inception, according to the most recent Stanger Market Pulse. As of December 31, 2015, the company owned interests in 53 properties in the U.S. and one in Canada.

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