JLL Capital Markets closed the sale of 3601 21st Street, a 20,880-square-foot, single-tenant, net-lease medical office property in Lubbock, Texas.
The property 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.
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.”