JLL arranges $600M sale of healthcare property portfolio across 10 states

Rhea-AI Summary

JLL's Healthcare Capital Markets team successfully facilitated the $600 million sale of a 27-property healthcare real estate portfolio, totaling 1.2 million square feet across 10 U.S. states, including Arizona, California, and Texas.

The portfolio, acquired by NorthWest Healthcare Properties, comprises 15 medical office buildings and various hospital types, boasting a 97% occupancy rate with reputable healthcare providers as tenants. This transaction underscores JLL's strong market execution and growing investor interest in healthcare assets.

Positive

• Successful sale of a diversified healthcare real estate portfolio for $600 million.
• Portfolio spans 27 properties across 10 U.S. states, enhancing geographic footprint.
• High occupancy rate of 97% with leading healthcare providers as tenants.

Negative

• None.

NorthWest Healthcare Properties REIT acquired the 27-property portfolio totaling 1.2M SF of medical office and hospital buildings

CHICAGO, April 19, 2022 /PRNewswire/ -- JLL's Healthcare Capital Markets group announced today that it has closed the $600 million sale of a 27-property, best-in-class, core-quality healthcare real estate portfolio totaling 1.2 million square feet in Arizona, California, Colorado, Illinois, Indiana, Florida, Massachusetts, Minnesota, Oklahoma and Texas markets.

JLL marketed the portfolio on behalf of the seller, Harrison Street. NorthWest Healthcare Properties acquired the assets.

"Harrison Street is proud to have partnered once again with JLL's Healthcare Capital Markets team to execute the sale of this complex portfolio spanning multiple medical sub-sectors and U.S. states," said Ben Mohns, Senior Managing Director and Head of North American Asset Management at Harrison Street. "The successful sale of these diversified healthcare assets reinforces the strength of Harrison Street's ongoing partnership with JLL, and the portfolio execution ability of our talented team who have worked diligently to execute on behalf of our investors."

The portfolio has a mix of 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital. The portfolio includes nine properties in Arizona; five properties in Texas and Illinois; two properties in Florida and one property each in Minnesota, Massachusetts, California, Oklahoma, Colorado and Indiana.

The portfolio is 97% occupied by key healthcare providers, including Advocate Aurora Health, Rush University Medical Center, Memorial Hermann, Ascension, Banner Health, Tenet Health, Lutheran Health Network, Baylor Scott & White Health and Edward-Elmhurst Healthcare.

The JLL Healthcare Capital Markets team representing the seller was led by Senior Managing Directors Mindy Berman, Evan Kovac, Andrew Milne and Brian Bacharach and Managing Directors Tim Joyce and Brannan Knott, with support from Vice Presidents Trent Jemmett and CJ Kodani. Local support was provided by JLL licensed brokers in each location.

"The offering was well received due to its scale and the mix of medical office and acute care facilities," Berman said. "Healthcare assets have seen increased investor interest, as the sector offers long-term leases with quality tenants that provide steady income to landlords."

The JLL Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with offices in London, Toronto, San Francisco and Washington D.C., the firm has more than 200-employees and approximately $44 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America. Harrison Street was awarded Best Places to Work by Pensions & Investments for seven consecutive years (2014-2020) and was recognized by PERE as the 2021 Alternatives Investor of the Year, North America and 2020 Global Alternatives Investor of the Year. For more information, please visit www.harrisonst.com.

About NorthWest Healthcare Properties ("NorthWest")
NorthWest is a global real estate investor and asset manager focused on properties and partnerships at the intersection of healthcare, knowledge and research. Founded in 2004 and publicly traded since 2010, NorthWest (TSX: NWH.UN) is a real estate investment trust that owns and operates a $10 billion portfolio of 224 high quality healthcare properties across Canada, the United States, Brazil, the UK, Germany, the Netherlands, Australia and New Zealand. With more than 300 professionals globally, operating in 7 countries, NorthWest brings a global view, local execution capabilities and a long-term ownership strategy which allows it to serve as a real estate partner of choice to leading healthcare operators around the world.

About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion in 2021, operations in over 80 countries and a global workforce of more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

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Contact: Cierra Lacasse, JLL Associate, Public Relations
Phone: +1 602 648 8701
Email:  Cierra.Lacasse@am.jll.com 

 

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SOURCE JLL

FAQ

What was the total value of the healthcare property portfolio sold by JLL?

The healthcare property portfolio sold by JLL was valued at $600 million.

Which states were included in the healthcare property portfolio transaction?

The portfolio included properties in Arizona, California, Colorado, Illinois, Indiana, Florida, Massachusetts, Minnesota, Oklahoma, and Texas.

Who acquired the healthcare properties sold by JLL?

NorthWest Healthcare Properties acquired the healthcare properties sold by JLL.

What types of facilities were included in the 27-property healthcare portfolio?

The portfolio included 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital.

What percentage of the healthcare portfolio is occupied?

The healthcare portfolio has a 97% occupancy rate.