The acquisition of a fully leased outpatient complex in Watertown, MA, deepens the REIT’s healthcare portfolio amid a broader shift toward outpatient care delivery.

March 6, 2026

JLL Income Property Trust has acquired West Boston Medical Center, a medical outpatient complex in Watertown, Massachusetts, for approximately $32 million. The transaction strengthens the daily NAV REIT’s healthcare holdings and reflects its ongoing strategy of targeting high-quality medical outpatient properties in markets with strong demand fundamentals.

Property Details

The property spans roughly 53,000 square feet and is fully leased to a single tenant, a prominent regional healthcare provider, under a newly executed 15-year lease that includes average annual rent escalations of 2.8 percent. The facility offers a broad range of clinical specialties, including internal medicine, pediatrics, OB/GYN, pharmacy, radiology, physical therapy, and dermatology.

The complex sits within a large mixed-use development encompassing more than one million square feet of retail, multifamily, hotel, and life science space — providing convenient amenities for both patients and staff. It is located just one mile from Cambridge and approximately six miles from Boston’s Longwood Medical Area, giving it direct access to a dense network of hospital partners. The surrounding area boasts strong demographics, with a population of roughly 332,000 and a median household income of about $120,000 within a three-mile radius.

Strategic Rationale

Allan Swaringen, President and CEO of JLL Income Property Trust, described the acquisition as an attractive addition to the company’s healthcare portfolio. He highlighted the Greater Boston submarket’s consistent demand, driven by the region’s academic institutions and its global significance in life sciences and technology. Swaringen also pointed to a growing industry trend favoring outpatient facilities over traditional hospital settings, which he said is creating compelling opportunities — particularly as the transaction environment becomes more favorable.

Healthcare Portfolio at a Glance

Healthcare real estate has been a core component of JLL Income Property Trust’s portfolio since its inception in 2012. As of December 31, 2025, healthcare investments represented 10 percent of the REIT’s approximately $6.9 billion portfolio, totaling $647 million across 25 properties.

JLL Income Property Trust is managed by LaSalle Investment Management, a subsidiary of JLL that oversees approximately $86.4 billion in global real estate assets across private and public equity and debt strategies.