JLL completes $50.3M monetization of fully leased medical outpatient building in Eugene, Oregon

SEATTLE, July 15, 2026 - JLL Capital Markets announced today the $50.3 million monetization of a fully leased, 157,296-square-foot multi-specialty medical outpatient building located at 1200 Hilyard St. in Eugene, Oregon, positioned two blocks from the University of Oregon campus in one of the state's most dynamic urban environments.

JLL represented the seller, PeaceHealth, as part of the disposition of its larger University District campus. This large outpatient building was acquired by Montecito Medical, one of the nation's most active investors in medical outpatient real estate. As part of the deal, PeaceHealth entered into a 12-year sale-leaseback agreement and will continue operating its medical outpatient services at the property.

The medical outpatient building houses a comprehensive range of clinical services including primary care, internal medicine, women's health, pediatrics, urgent care, imaging, dermatology, endocrinology and behavioral health. Constructed in 1990 and substantially renovated in 2014, the property features large, efficient floor plates ranging from 20,000 to 41,000 gross square feet with 12-foot slab-to-slab heights. The attached 888-stall parking structure provides direct access to the medical building via an elevator core.

Eugene, the second-most populous city in Oregon, is home to approximately 383,000 residents within the metropolitan area and has experienced 12% population growth since 2010. The city serves as a regional healthcare hub for west-central Oregon and benefits from the economic stability provided by PeaceHealth's 5,000 local employees and multiple institutions of higher education. The property is centrally located in Eugene, within walking distance of the University of Oregon, home to some 24,000 students, and the city's downtown core.

"We are pleased that this sale will allow our patients to continue to have uninterrupted, easy access to the high-quality treatment from the many talented caregivers who practice at our University District site," said Alicia Beymer, chief administrative officer, Sacred Heart Medical Center at RiverBend.

JLL's ongoing efforts on behalf of PeaceHealth are led by Managing Directors Tom Kirschbraun and Buzz Ellis. For this execution, JLL's Healthcare and Medical Office Building (MOB) team was brought in, led by Senior Managing Directors Evan Kovac and Andrew Milne, Senior Director Matt DiCesare and Associate Sam Prendergast.

"Strategic monetization transactions allow health systems to unlock real estate value while preserving their care delivery footprint," Kovac said. "Growing healthcare utilization and aging demographics continue to support demand for well-located medical outpatient facilities."

JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients, including investment sales and advisory, debt advisory, M&A and corporate finance, loan sales, equity & fund placement, net lease, derivative advisory and energy & infrastructure advisory. The group has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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