Investors Step Up for Mission-Critical Medical

January 21, 2019

JLL Healthcare Capital Markets experts have completed the sale of the Elliott Bay National Medical Office Portfolio, an 18-building portfolio of outpatient facilities leased to major health systems and spread across eight states. The buyer was Broadstone Net Lease, a publicly reporting, private REIT based in Rochester, New York.  

Managing Directors Mindy Berman and Daniel Turley, and Vice President Brannan Knott handled the sale on behalf of the seller, Seattle-based Elliott Bay Capital Trust.

“The Elliott Bay portfolio is that rare type of offering that attracts investors to the health care real estate sector: a highly durable, investment-grade income portfolio, tenanted by some of the nation’s leading health systems,” said Knott. 

The net-lease properties are fully occupied by market-leading and academic health systems with 99 percent investment grade tenancy. Located across eight states (IL, WA, VA, NY, PA, MI, NC, SC) in desirable major U.S. metropolitan areas, the properties have mission critical healthcare infrastructure including ambulatory surgery, cancer treatment, multi-specialty medical and imaging centers. 

The significant investment in the fit-out at these locations creates high retention rates and long-term, inelastic tenancy – one of the main drivers for medical office investment.  The portfolio encompasses the broad healthcare retail delivery model of pushing moderate to high acuity healthcare services out of hospital locations and into lower cost, more convenient outpatient settings.  The Class A portfolio is primarily first generational space with an average age of only seven years from construction.

JLL Healthcare Capital Markets is the only national full-service healthcare capital markets team in the real estate industry focused on medical office, hospitals, seniors housing and post-acute care. The team consistently transacts over $1 billion annually with unrivaled expertise and experience in investment sales, monetization, development debt and equity capital raise and advisory services for investor and provider clients. JLL has an extensive national and international presence that delivers local market knowledge and exceptional access to capital.

JLL Capital Markets 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 a sale, financing, repositioning, advisory or recapitalization execution. In 2017 alone, the firm’s 2,400 Capital Markets specialists completed $170 billion in investment sale and debt and equity transactions globally.

For more capital markets content, visit The Investor, an online news source providing real-time commercial real estate news to asset buyers and sellers around the world. For more news, videos and research resources on JLL, please visit the firm’s U.S. newsroom.

 

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