JLL Income Property Trust, a daily net asset value real estate investment trust, has purchased 9101 Stony Point Drive, an 87,000-square-foot medical office building in Richmond, Virginia for approximately $52 million.
This recently constructed property is net-leased on a long-term basis as an outpatient facility and headquarters for Virginia Urology, a urology practice in central Virginia.
“Healthcare-focused properties including medical office and life sciences continue to be our narrow focus within the office sector,” said Allan Swaringen, president and chief executive officer. “Limited new supply, exceptional occupancy along with significant barriers to entry due to higher construction and tenant improvement costs often lead to longer tenant retention, creating a stable investment opportunity. This is especially true for 9101 Stony Point Drive where the tenant has shown its commitment by investing in property upgrades and making the building its headquarters.”
Constructed in 2018 as a build-to-suit for Virginia Urology, the property includes an ambulatory surgery center, imaging center, infusion center and lab space. The property is located near downtown Richmond in a primary residential area and has a weighted average lease term of more than 13 years with built in 2.5 percent annual rent escalations.
This acquisition increases JLL Income Property Trust’s healthcare allocation to six properties totaling more than 530,00 square feet, valued in excess of $275 million and representing approximately 6 percent of its overall portfolio. Earlier this year, the REIT purchased 170 Park Ave, a life sciences property in Florham Park, New Jersey.
Jones Lang LaSalle Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) oversees a $4.7 billion portfolio of residential, industrial, office and grocery-anchored retail properties. The REIT launched in October 2012 and has raised more than $2.25 billion in investor equity as of July 2021.