JLL Closes $50.3M Sale-Leaseback of PeaceHealth Medical Outpatient Building in Eugene for Montecito Medical
JLL Capital Markets has completed the $50.3 million sale-leaseback of a fully leased, 157,296-square-foot multi-specialty medical outpatient building at 1200 Hilyard St. in Eugene, Oregon, the firm announced July 15, 2026. PeaceHealth, the Vancouver, Washington-based non-profit Catholic health system, sold the six-story property to Montecito Medical and simultaneously entered into a 12-year leaseback, under which it will continue operating outpatient clinical services at the site.
Deal Structure and Property Details
JLL represented PeaceHealth in the transaction, which was executed as part of the health system's broader disposition of its University District campus in Eugene. Montecito Medical, one of the nation's most active private investors in medical and veterinary real estate, acquired the asset. At $50.3 million for 157,296 square feet, the transaction implies a price of approximately $320 per square foot.
The building, constructed in 1990 and substantially renovated in 2014, features large floor plates ranging from 20,000 to 41,000 gross square feet and 12-foot slab-to-slab heights. An attached 888-stall parking structure provides direct access to the medical building via an elevator core. The property is situated two blocks from the University of Oregon campus and within walking distance of Eugene's downtown core.
The 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. The property is fully leased.
PeaceHealth's Campus Strategy
The sale-leaseback is part of a larger monetization effort by PeaceHealth at its University District campus. JLL has been engaged by PeaceHealth on its ongoing University District campus disposition, which includes additional properties beyond the outpatient building transacted in this deal.
"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.
PeaceHealth operates approximately 16,000 caregivers, nearly 3,200 physicians and clinicians, more than 160 clinics and nine medical centers across Washington, Oregon and Alaska. The 12-year leaseback structure preserves PeaceHealth's clinical footprint at the site while converting the real estate asset into liquid capital.
JLL Team and Market Commentary
JLL's ongoing efforts on behalf of PeaceHealth are led by Managing Directors Tom Kirschbraun and Buzz Ellis. For this transaction, JLL's Healthcare and Medical Office Building 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."
Eugene Market Context
Eugene is Oregon's second-most populous city, with approximately 383,000 residents in the metropolitan area and 12% population growth since 2010, according to JLL. The city functions as a regional healthcare hub for west-central Oregon, with PeaceHealth employing approximately 5,000 workers locally. The University of Oregon, located within walking distance of the property, enrolls approximately 24,000 students, alongside multiple other institutions of higher education in the area.
Montecito Medical, headquartered in Nashville, Tennessee, has completed more than $6.5 billion in medical and veterinary real estate transactions since its founding in 2006.
JLL's Capital Markets group operates globally with more than 3,000 specialists in offices across nearly 50 countries, providing investment sales and advisory, debt advisory, and related capital solutions for real estate investors and occupiers.
About the Companies
JLL (NYSE: JLL) reported annual revenue of $26.1 billion and employs more than 113,000 people across operations in over 80 countries as of March 31, 2026. PeaceHealth traces its roots to 1890, when the Sisters of St. Joseph of Peace founded the organization that has grown into a multi-state health system. Montecito Medical specializes in medical and veterinary real estate acquisitions and also offers technology solutions aimed at supporting healthcare providers.