JLL REIT Buys Medical Office Building in Sacramento, Calif., Submarket

Chicago-based real estate investment trust (REIT) JLL Income Property Trust recently announced the acquisition of a medical office property in the Sacramento, Calif., submarket of Roseville, Calif.

The property in question, for which the REIT reportedly paid approximately $19 million, is the Roseville Outpatient Center — a medical outpatient building that encompasses approximately 42,000 square feet of class A Sacramento office space(opens in new tab). That brought the deal down to roughly $452 per square foot.

Located in one of the most affluent submarkets of the larger Sacramento office market, the single-story medical office building was reportedly 95% leased to a mix of tenants with an approximately 12-year weighted average lease term.

Anchored by a leading integrated health care tenant, the property was redeveloped in 2024 with buildouts and improvements to equip the outpatient center for specialized medical uses.

Roseville Outpatient Center is located half a mile from a larger hospital campus in a region that boasts positive population and income growth trends with median household incomes and home values well above national averages.

Health care real estate has been a mainstay in the JLL Income Property Trust portfolio since the REIT’s inception in 2012. With the addition of this suburban Sacramento acquisition, health care investments comprise 10% of its portfolio. Specifically, 26 health care properties account for approximately $667 million in the trust’s assets.

“Roseville Outpatient Center is an excellent addition to our health care portfolio,” said Allan Swaringen, president and CEO of JLL Income Property Trust. “An aging, growing patient base is driving health care spending, and technology shifts are bringing more affordable care to outpatient facilities. Given these trends, we are seeing health care traffic shift away from larger hospitals toward outpatient centers, driving demand for purpose-built medical facilities. The sector can require high buildout costs, and available space is quite scarce in this submarket, all pointing to long-term tenant demand for properties like these.”

JLL Income Property Trust’s portfolio of real estate investments continues to grow. The organization is an institutionally managed, daily net asset value REIT that owns approximately $7 billion in portfolio equity and debt investments.