Jones Lang LaSalle Income Property Trust, a daily net asset value real estate investment trust, has purchased the Sugar Land Medical Plaza, a newly constructed, 37,000-foot medical office property located in the Houston suburb of Sugar Land, Texas. The purchase price was approximately $18.4 million.
Completed in 2020, the two-story Class A property is fully leased to a roster of healthcare providers. The property includes a surgery and imaging center, and a full diagnostic suite with MRI, CT, ultrasound and X-Ray machines, the company said. The weighted average lease term of the property is more than nine years.
“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 build-outs and leases,” said Allan Swaringen, president and chief executive officer. “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 is home to the largest medical complex in the world, the Texas Medical Center. Sugar Land is 20 miles southwest of Houston and has five hospitals within a three-mile radius of Sugar Land Medical Plaza.
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.
Jones Lang LaSalle Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) oversees a $6.3 billion portfolio of residential, industrial, office and grocery-anchored retail properties. Since the beginning of 2012, the REIT raised a total of approximately $3.7 million through its ongoing public and various private offerings, as well as its distribution reinvestment plan.