Salt Lake City — JLL Capital Markets announced today that it has facilitated the sale of and arranged acquisition financing for Granger Medical Clinic, a newly constructed, 94,834-square-foot, Class-A medical office building in West Valley City, Utah.
JLL marketed the property on behalf of the seller, Granger Medical Clinic. AEW and Montecito Medical Real Estate acquired the property. Additionally, JLL worked on behalf of the new owner to secure the acquisition financing.
The property is a four-story, build-to-suit medical office that is master leased to Granger Medical Clinic with other local healthcare partners subleasing a portion of the building. With an occupancy of 100 percent and a remaining lease term in excess of 13 years, the property provides stable and predictable long-term cash flow.
Located at 2965 West 3500 S., Granger Medical Clinic is situated in the infill submarket of West Valley City within the Salt Lake City MSA. The property is positioned along a busy commercial corridor close to Jordan Valley Medical Center West and just west of Interstate 215. Granger Medical Clinic is one of the primary anchors of Fairbourne Station, a master-planned transit-oriented mixed-use redevelopment project defining the downtown district of Utah’s second-largest city, West Valley City.
The JLL Healthcare Capital Markets team representing the seller was led by Managing Directors Andrew Milne, Evan Kovac, and Phil Brierley with support from Niema Beglari, Trent Jemmett, and Chad Prescher. JLL’s VP Jami Marsh provided local healthcare expertise.
JLL’s Healthcare Capital Markets team spearheading the financing efforts included Senior Managing Director Daniel Turley and Managing Directors John Chun and Mark Root.
Michael Byrne, CIO and head of Private Equity and Debt for AEW, says the acquisition represents “AEW’s continued expansion into demographically driven healthcare real estate strategies. Our long-term investment in these types of assets represents part of AEW’s overall strategy to aggregate defensive healthcare-related assets, such as medical office, seniors housing, ambulatory surgical centers, independent rehabilitation facilities, and other assets that are critical for our aging demographic.”
“There has been a consistent shift of healthcare services away from hospital settings and into outpatient clinics, bolstering the need for medical office space. Demand has doubled in the last 20 years and is expected to grow 20 percent over the next 10 years,” says Mark Morrison, Senior Portfolio Manager, AEW Private Equity.
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 deliver the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory, or recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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