JLL has completed the $50.3 million monetization of a fully leased medical outpatient building at 1200 Hilyard St. in Eugene. The multi-specialty facility, totaling 157,296 square feet, sits two blocks from the University of Oregon and continues to function as a key component of the city’s healthcare infrastructure.
The transaction involved the sale of the property by PeaceHealth as part of its broader disposition of the University District campus. Montecito Medical acquired the large outpatient building, extending its portfolio of healthcare-focused real estate with a stabilized, multi-tenant asset.
As part of the sale, PeaceHealth entered into a 12-year sale-leaseback agreement and will remain in operation at the property. The structure of the deal allows PeaceHealth to continue delivering medical services from the same location while transitioning ownership of the real estate to Montecito Medical.
The outpatient building was originally constructed in 1990 and underwent substantial renovation in 2014. The property includes an attached parking structure with 888 stalls, providing direct access to the medical facility via an elevator core. This configuration is intended to support high volumes of patient and staff traffic and to streamline access between parking and clinical areas.
JLL represented PeaceHealth in the transaction as part of its ongoing work related to the health system’s University District campus disposition. The firm’s efforts on behalf of PeaceHealth are being led by Managing Directors Tom Kirschbraun and Buzz Ellis.
For this execution, JLL brought in its dedicated healthcare and medical office building team. Senior Managing Directors Evan Kovac and Andrew Milne, Senior Director Matt DiCesare and Associate Sam Prendergast led the specialized team focused on the medical office component of the assignment. Their role encompassed marketing the asset and managing the sale process to completion.
The closing of this sale-leaseback transaction marks a significant step in PeaceHealth’s broader campus strategy while adding a fully leased, institutionally managed healthcare property to Montecito Medical’s holdings. The long-term leaseback and the property’s proximity to a major university underline its ongoing role in serving both the local community and the surrounding region’s healthcare needs.
