JLL Income Property Trust has acquired Genesee Plaza, a Class A, two-building medical office campus in San Diego. The property was acquired for $90 million, below its estimated replacement cost.
"The acquisition of Genesee Plaza is a strong fit for JLL Income Property Trust's focus on medical office buildings as they have historically featured higher tenant retention and delivered stable income," JLL Income Property Trust President and CEO Allan Swaringen said in a statement. "Our focus on reducing risk within our portfolio as we get later in the current economic cycle stems from our investment objectives to deliver stable income and protect stockholder value. While we remain underweight to the office property sector, which accounts for only 14% of our $2.8 billion portfolio, four of our six office properties are medical office buildings."
Genesee Plaza is located at a prominent intersection in San Diego's University Town Center benefiting from access to major highway systems and a strong surrounding daytime foot traffic from local businesses. The property's location is in close proximity to the University of California, San Diego and Scripps Hospital Campuses. The property's coastal infill location has seen severe supply constraints with high barriers to entry from both geographic barriers and zoning restrictions.
JLL Income Property Trust is an institutionally managed, daily NAV REIT that seeks to give investors access to a growing portfolio of commercial real estate investments.