Single-tenant on-campus medical office building in Lubbock sells

JLL closed the sale of the building that is triple net leased to a health system

July 22, 2020

LOS ANGELES, July 22, 2020 – JLL Capital Markets announced today that it has closed the sale of 3601 21st St., a 20,880-square-foot, single-tenant, net-lease medical office property in Lubbock, Texas.

JLL represented the seller, a joint venture between Healthcare Property Advisors and The Innovation Institute. The buyer was Los Angeles-based RealtyMogul.

3601 21st St. is fully leased to Covenant Health System, the dominant healthcare provider in the region and the largest health care institution in West Texas. Covenant Health System is a wholly owned sub-network of Providence St. Joseph (Moody’s Aa3). The three-story property was completed in 1966 and most recently renovated in 2003.  Situated on 1.21 acres, the building is within the 200-acre Lubbock Medical District and at the front door of the 394-bed Covenant Medical Center, the largest

hospital by both bed count and revenue in the Covenant Health System network. The property is in Lubbock, which is the Southwest’s preeminent medical center between the Dallas-Fort Worth Metroplex and Phoenix.

The JLL Capital Markets team representing the seller, included Nick Foster, who is part of the Corporate Finance Team; Evan Kovac, Andrew Milne and Matt DiCesare from the National Healthcare Capital Markets Team; and Michael George from the Dallas office of the Corporate Finance Team. Additionally, John Chun, who is a member of the National Healthcare Capital Markets Team, advised from a debt and structured finance perspective.

“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.”

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 advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Deal secured by Holliday GP Corp. (“HFF”) prior to being acquired by JLL on July 1, 2019. HFF is now part of JLL. Real estate brokerage services now provided by Jones Lang LaSalle Americas, Inc.  

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 $18.0 billion, operations in over 80 countries and a global workforce of more than 94,000 as of March 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit

About Healthcare Property Advisors

Healthcare Property Advisors (HPA) is a national, full-service and vertically integrated medical office building developer and investor specializing in healthcare real estate. HPA partners with health systems, acute care, pediatric and senior care hospitals and medical groups, across the United States. HPA specializes in acquiring, developing, leasing and managing medical office buildings, specializing in ambulatory care centers, clinics and parking structures with the backing of institutional capital through our discretionary Growth Fund and other joint ventures. HPA’s efficient, hands-on management and ability to enhance these properties with attractive economic returns for its investors, while being mindful in delivering an asset that serves the purpose of the community and its health systems. Healthcare real estate requires more efficient ways of delivering outpatient services, and with HPA’s background and expertise, it is able to assist health systems in their future growth of outpatient strategies. For more information, please visit, or contact them at

About The Innovation Institute

The Innovation Institute is an independent, for-profit LLC structured to cultivate innovative solutions to transform healthcare delivery. The Innovation Institute is owned by non-profit health systems. This collaboration taps into physicians, employees and industry business partners to incubate and commercialize new medical products and ideas through its Innovation Lab. Comprised of three distinct elements – an innovation lab, an investment fund, and a shared services group (Enterprise Development Group), The Innovation Institute strives to “do more, with less, for more people.” For more information, visit

About RealtyMogul

RealtyMogul is a private equity firm with investments in over $2 billion of real estate. The company directly acquires predominantly multifamily assets for its portfolio as well as connects commercial real estate companies to capital from individual investors through its industry leading online platform. Backed by leading VCs, RealtyMogul is one of the largest, most recognizable brands in online real estate crowdfunding, with nearly 200,000 users investing over $500 Million in capital into hundreds of real estate projects nationwide. The RealtyMogul platform offers a wide variety of commercial real estate investment opportunities: two public non-traded REIT offerings allow all members access to commercial real estate opportunities with a minimum investment of $5,000, while accredited investors enjoy access to REITs, individual private placement transactions and investments eligible for 1031 exchanges. For further information, visit