March 11, 2020 – JLL Capital Markets announced today that it has closed the $30.3 million sale of Sanford Health’s Corporate Administration Facility, a 158,000-square-foot, two-building office property in Sioux Falls, South Dakota.
JLL marketed the property on behalf of the seller.
The property was completed in two phases in 1999 and 2000 and is fully leased to Sanford Health, one of the largest healthcare systems in the United States and South Dakota’s largest employer. The two-building complex serves as a mission critical facility housing Sanford’s payroll functions, patient financial services and corporate human resources for the 48,000-employee corporation. Positioned on 24.99 acres at 2200 East Benson Road, the facility is proximate to Interstates 229 and 90 and just four blocks from Sanford’s world headquarters.
The JLL Capital Markets team representing the seller was led by Senior Directors Tivon Moffitt and Peter Bauman. Brett Behrends with Century21 provided co-brokerage services.
“Long-term, single tenant office properties continue to be in high demand. Especially, this late in the economic cycle,” Bauman said. “Investors are flocking to safety, standing on the pillars of credit tenants, long-term leases, rents to market, and tenant’s prominence in their industry vertical. This strategy limits investor risk in the event there is an economic slowdown in the near-term horizon.”
“We were pleased to sell this asset as it was on a long-term lease with a strong investment grade tenant,” Moffitt added. “Sanford Health is a dominant industry leader in the health care sector. The investor demand was strong with multiple offers.”