JLL Capital Markets recently announced that it had completed the sale of Duke Medical Plaza at Patterson Place in Durham, N.C., on behalf of the seller. Senior Director Brannan Knott; Directors John Mikels and Daniel Flynn; and Analyst Woody Flythe led the JLL Capital Markets team representing the seller.
The buyer was JLL Income Property Trust, an institutionally managed daily net asset value real estate investment trust that is advised by LaSalle Investment Management. According to the announcement, the purchase price was roughly $37.1 million.
Located at 5324 MacFarland Dr., the property incorporates 64,280 square feet of Durham office space, most of which is dedicated to medical office use, as affiliates of Duke University Health System occupy approximately 86% of the building. Ranked as the best hospital in the state, Duke holds 31% of local market share and is the dominant academic healthcare provider in North Carolina. The organization recently agreed to a lease extension and expansion with a weighted average lease term of more than nine years, which will increase its occupancy in the four-story building to 96%.
Duke Medical Plaza was built in 2010 and strategically located in the Research Triangle submarket at the intersection of US 15-501 and Interstate 40 — a short drive to large health systems, such as Duke Health and UNC Health in both Chapel Hill and Durham. This ensures convenient and easy access for patients, as well as the highly educated workforce in the region.
“We’re thrilled to add Duke Medical Plaza to our growing healthcare portfolio as we continue to make healthcare-focused properties our priority focus within the office sector,” said JLL Income Property Trust President and CEO, Allan Swaringen. “This well-located property, occupied by a world-class tenant, fits squarely into our strategy of acquiring medical office buildings with these traits. This acquisition further diversifies our portfolio across our targeted property sectors that align with our Research & Strategy team’s recommended overweights.”
According to the statement of sale, JLL Income Property Trust’s healthcare allocation now represents about 8% of its overall portfolio and incorporates more than 1.1 million square feet of medical office space across 15 properties.
Duke Medical Plaza at Patterson Place, 5324 McFarland Drive, in Durham, N.C. (property image courtesy of CommercialEdge)
