JLL Income Property Trust buys Virginia medical office building for $52m

JLL Income Property Trust buys Virginia medical office building for $52m
Image: Courtesy of JLL Income Property Trust

JLL Income Property Trust has acquired 9101 Stony Point Drive, an 87,000-square-foot, world-class, medical office building in Richmond, Virginia for $52 million.

This recently constructed, mission-critical property is net-leased on a long-term basis as a premier outpatient facility and headquarters for Virginia Urology, the urology practice in central Virginia.

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 strategically located near downtown Richmond in a primary residential area with immediate access to the surrounding highway system, drawing patients from throughout the Richmond metro.

The property has a weighted average lease term of over 13 years with built in 2.5 percent annual rent escalations.

“Healthcare-focused properties including medical office and life sciences continue to be our narrow focus within the office sector,” said Allan Swaringen, President and CEO of JLL Income Property Trust.

“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. We’re pleased to add this property to our growing healthcare-oriented portfolio,” he added.

JLLIPT earlier this year purchased 170 Park Ave, a premier life sciences property in Florham Park, New Jersey.

This acquisition increases JLL Income Property Trust’s healthcare allocation to six properties totaling more than 530,000 square feet, valued in excess of $275 million and representing approximately 6 percent of its overall portfolio.