News release

Sale of medical office portfolio in Texas and Kansas closes

JLL Capital Markets facilitated the sale of the fully leased, 18-property portfolio

March 30, 2022

Cierra Lacasse

Hotels & Hospitality and Capital Markets
+ 1602 648 8701

DALLAS, Mar. 30, 2022 – JLL Capital Markets announced today that it has closed the sale of an 18-property medical office portfolio totaling 762,780 square feet in Texas and Kansas. The properties are directly aligned with partnerships between Ardent Health Services, a leading healthcare provider, and two market-leading academic health systems, The University of Texas Health Science Center at Tyler and The University of Kansas Health System.

JLL marketed the properties on behalf of the seller, Ardent Health Services. The portfolio was acquired by a healthcare-focused real estate investment trust.

The medical office portfolio consists of:

·       Continental Medical Building, 631 SW Horne St., Topeka, Kansas

·       Mulvane Medical Plaza, 634 SW Mulvane St., Topeka, Kansas

·       UT Health East Texas Hope Center, 721 Clinic Dr., Tyler, Texas

·       Olympic Plaza Tower, 700 Olympic Plaza, Tyler, Texas

·       UT Health Rehabilitation Center, 701 Olympic Plaza, Tyler, Texas

·       East Lake Professional Building, 1100 E. Lake, Tyler, Texas

·      South Broadway, 6210 S. Broadway Avenue, Tyler, Texas

·       Lake Palestine, 18118 FM 344 W, Flint, Texas

·       Medical Plaza I, 117 Medical Circle, Athens, Texas

·       Medical Plaza II, 115 Medical Circle, Athens, Texas

·       Athens Cancer Institute, 1801 S. Palestine, Athens, Texas

·       Lakeland Medical Associates, 170 Municipal Dr., Gun Barrell City, Texas

·       UT Health Cedar Creek Lake, 100 Municipal Dr., Gun Barrell City, Texas

·       Jacksonville Medical Plaza, 203 Nacogdoches, Jacksonville, Texas

·       UT Health East Texas Rehabilitation Clinic – Jacksonville, 414 S. Main St., Jacksonville, Texas

·       UT Health East Texas Physicians Rusk, 1325 N. Dickinson Dr., Rusk, Texas

·       UT Health East Texas Rehabilitation Clinic – Mineola, 1616 N. Pacific St., Mineola, Texas

·       UT Health East Texas Olympic Center Pittsburg, 2801 US Hwy 271 N, Pittsburg, Texas

The properties are fully leased by affiliates of UT Health East Texas and The University of Kansas Health System St. Francis Campus with a wide range of specialty uses, including radiation oncology, cardiology, neurology, orthopedics, urology, OBGYN, imaging, emergency care, family medicine and inpatient rehabilitation. More than 90% of the portfolio is concentrated in on-campus locations with the balance of the properties strategically positioned to support outpatient strategies across the surrounding communities.

The JLL Healthcare Capital Markets team representing the seller was led by Senior Managing Directors Brian Bacharach and Mindy Berman and Vice President Vasili Davos.

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 $19.4 billion, operations in over 80 countries and a global workforce of more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

About Ardent Health Services

Ardent Health Services invests in people, technology, facilities and communities. Through its subsidiaries, Ardent owns and operates 30 hospitals and more than 200 sites of care in six states with more than 26,000 employees, including 1,200+ employed providers. With a focus on evidence-based practices to improve quality care and patient outcomes, 85% of Ardent hospitals received a Leapfrog Hospital Safety Grade of A or B for fall 2021 compared with 58% of ranked hospitals. In 2021, Modern Healthcare recognized five Ardent hospitals as "Best Places to Work," marking the 13th consecutive year an Ardent facility was recognized. Based in Nashville, Tennessee, Ardent is owned by Chai Trust Company, LLC, which does business as Equity Group Investments (EGI), a Chicago-based private investment firm; Ventas, Inc. (NYSE: VTR), a publicly traded real estate investment trust; and current and former members of Ardent’s executive management team.