JLL facilitates sale of medical office near Salt Lake City
The build-to-suit property is fully leased to Granger Medical Clinic
SALT LAKE CITY – December 22, 2021 – 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 Vice President 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, said 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,” said 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 delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Granger Medical Clinic
Granger Medical Clinic was founded in 1954 by Doctors LaVere Poulsen and Glenn Wilson. The two providers came together with the hope of better serving the Granger community (now West Valley City) on the west side of the Salt Lake valley. They were the first (and at the time, only) physicians in Utah west of the Jordan River to serve a growing population that had previously needed to travel east to find a provider.
Their practice steadily grew and in 1998, the clinic – then 21 providers strong – moved to a larger building in West Valley City. Continuing its trajectory, Granger Medical Clinic added locations, opening offices in West Jordan, Riverton and Draper. Today, Granger Medical Clinic has become one of Utah’s largest physician-owned medical groups with nearly 27 locations now spanning four counties reaching from Bountiful to American Fork and Park City to Tooele.
Along the way, Granger Medical Clinic has added many specialists and ancillary services to improve convenience and quality of care for its patients. Within Granger Medical Clinic, there are over 170 providers practicing in about 25 specialties with other services (including sleep labs, clinical research studies, lab and imaging) being offered.
About Montecito Medical Real Estate
Montecito Medical is one of the nation’s largest privately held companies specializing in healthcare-related real estate acquisitions and funding the development of medical real estate. Montecito is a leading resource for both medical real estate owners and healthcare providers seeking to monetize or expand their holdings. Since 2006, it has completed transactions across the United States involving more than $4 billion in medical real estate. Headquartered in Nashville, Tenn., Montecito has been named as a “key influencer in healthcare real estate” by GlobeSt.com and the editors of Healthcare Real Estate Insights.
About AEW
Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide One of the world’s leading real estate investment advisors, AEW and its affiliates manage approximately $89.7 billion of property and securities in North America, Europe and Asia (as of September 30, 2021). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, London, Paris, Düsseldorf, Hong Kong, Seoul, Singapore, Sydney and Tokyo, as well as additional offices in eight European cities. For more information please visit www.aew.com.