#United States #Naperville #JLL Income Property Trust #Naperville Medical #Medical Outpatient

JLL Income Property Trust Expands Healthcare Footprint

On April 3, 2025, JLL Income Property Trust announced a significant acquisition that marks its strategic expansion in the healthcare real estate sector. The institutionally managed REIT, listed under NASDAQ (ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), has purchased the Naperville Medical Center situated in the affluent suburb of Naperville, Illinois, for approximately $16.3 million. This newly converted single-story medical outpatient facility spans 39,500 square feet and boasts full occupancy by a prominent nonprofit health system, which operates extensively in the Midwestern and Southeastern United States.

A Prime Location for Healthcare Services

The Naperville Medical Center, operational since its conversion to a healthcare facility in 2020, offers a variety of medical services including general surgery, primary care, physical therapy, and cardiology. The suburb of Naperville was recently named the number one city to live in America, reflecting its desirable living conditions, dense population, and high income levels compared to national averages. With a population exceeding nine million, the Chicago area ranks third in the nation for medical outpatient markets, following New York and Los Angeles, making it a strategic location for healthcare investments.

Strong Lease Terms and Future Growth

The facility operates under a ten-year lease agreement that includes annual rent increases of two percent, indicating a robust financial commitment from the tenant. Allan Swaringen, the President and CEO of JLL Income Property Trust, remarked on the investment's attractiveness, emphasizing the critical role of healthcare facilities in the community, particularly in light of an aging population that drives increasing demand for health services. Swaringen noted that this acquisition aligns perfectly with the company's strategy to enhance its portfolio with high-quality medical properties in target markets.

Strategic Investments and Market Insights

Following a period of significant transactions, including recent disposals, JLL Income Property Trust entered 2025 with strong liquidity, bolstered by a $100 million investment from its sponsor, JLL. This financial posture allows the trust to pursue additional opportunities that yield attractive returns. In Swaringen’s words, “As market pricing adjusts following the aftermath of recent Fed interest rate cuts, we are optimistic that the real estate market is entering the dawn of a new cycle.”

With healthcare real estate forming a crucial segment of JLL's investment strategy, the trust currently holds healthcare assets worth $605 million across 23 properties, representing 10% of its total $6.6 billion portfolio. This acquisition is a testament to JLL Income Property Trust's commitment to diversifying its portfolio and investing in sectors poised for growth.

About JLL Income Property Trust

JLL Income Property Trust operates as a daily NAV REIT, primarily focused on acquiring and managing a diverse portfolio of high-quality income-generating properties across multiple sectors, including healthcare, residential, industrial, and retail. The trust aims to further diversify its real estate holdings on a domestic and global scale. For more information, prospective investors and interested parties may visit the company’s website at www.jllipt.com.

Conclusion

The acquisition of Naperville Medical Center highlights JLL Income Property Trust’s strategic focus on healthcare facilities, meeting the increasing demand for accessible medical services. This investment not only strengthens their portfolio but also contributes to the well-being of the communities they serve, positioning the trust for continued success in a changing economic landscape.