July 23, 2020
JLL Capital Markets closed the sale of 3601 21st St., a 20,880-square-foot, single-tenant, net-leased medical office property in Lubbock. Terms weren’t disclosed.
A JLL team including Nick Foster, Evan Kovac, Andrew Milne, Matt DiCesare and Michael George represented the seller, a joint venture between Healthcare Property Advisors and The Innovation Institute. The buyer was Los Angeles-based RealtyMogul. Additionally, JLL’s John Chun advised from a debt and structured finance perspective.
3601 21st St. is fully leased to Covenant Health System, reportedly the largest healthcare institution in West Texas. The three-story medical office building was completed in 1966 and most recently renovated in 2003.
“Despite obvious challenges in the capital markets, single-tenant opportunities backed by investment-grade tenants remain a bright spot for investors looking for certainty of income,” Foster said. “This investment checked a lot of boxes and generated interest from single-tenant as well as healthcare-focused capital sources.”
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