A medical office building on the St. Joseph Hospital campus in Uptown has sold for the first time since it was completed in 2020.
Dallas, Texas-based Lincoln Property Co. and PGIM, the asset management division of Prudential Financial, purchased the 99,500-square-foot building at 1818 N. Ogden St. on March 6, according to public records.
The firms paid $44.5 million, or $447 a square foot, records show. They took out a $125 million loan from BMO Bank in conjunction with the purchase.
The deal didn’t include the land beneath the 5-story building, which is owned by Intermountain Health.
The building was sold by Dallas, Texas-based Fidelis Healthcare Partners. Fidelis struck a 70-year ground lease in 2018 with St. Joseph and parent company SCL Health, which in 2022 merged with Salt Lake City, Utah-based Intermountain and took on that company’s name.
At the time, St. Joseph’s two existing medical office buildings, totaling about 250,000 square feet, were 99% leased and had a waiting list for space.
The 1818 Ogden building is 82% leased, according to the buyers.
“Medical outpatient is a needs-based, high-conviction sector for us, benefiting from powerful demographic trends, structural shifts in how care is delivered, and natural supply constraints,” Soultana Reigle, managing director and head of U.S. equity for PGIM’s real estate business, said in a statement.
Intermountain originally leased 26% of the building but added 40% more in 2024, according to marketing materials prepared by CBRE. The remaining tenants are physician groups ranging from pediatrics to audiology to dentistry.
Tenants are on triple-net leases with rent increasing an average of 3% annually, according to CBRE. Space on the bottom and top floors is still available.
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