JLL Income Property Trust Acquires Kansas City MOB Portfolio

KANSAS CITY, MO – Institutionally-managed, daily NAV REIT, JLL Income Property Trust has purchased a three-property medical office portfolio in Kansas City, MO for $22.2 million.

The more than 50,000-square-foot portfolio is 100% leased to leading health systems and physician group tenants. The Kansas City medical office portfolio has a weighted average lease term of nearly 15 years, which provides long-term cash-flow.

The properties include the nearly 30,000-square-foot Roeland Park medical office building, which was constructed in 2021 and is anchored by the AdventHealth subsidiary, AdventHealth Shawnee Mission; the 10,000-square-foot  Northland Women’s Healthcare medical office building, which was constructed in 2021 and is fully-leased to an established Kansas City women’s healthcare provider; and the 10,500-square-foot Blue Springs Pediatrics medical office building, which was fully redeveloped in 2021 as a best-in-class, single-tenant property that is currently leased to a physician group that is subsidiary of Children’s Mercy.

“We’ve continued to focus on expanding our national medical office portfolio as we target healthcare-oriented properties in the office sector to take advantage of positive, long-term market trends that should continue to produce stable cashflow for our shareholders,” says JLL Income Property Trust president and CEO Allan Swaringen.

Swaringen adds, “Kansas City Medical Office portfolio is another great example of a top-of-the-line asset in a location with positive demographic trends and strong tenancy that we believe positions our portfolio well for the coming years.”

The transaction increases JLL Income Property Trust’s healthcare allocation to total more than 1.1 million square feet across 12 properties, valuing more than $450 million. The REIT’s healthcare properties represent 8% of its overall portfolio.