Watertown Medical Offices Sell for $32M

JLL Income Property Trust acquires 53,000-square-foot building leased to Atrius Health

Published on Mar. 5, 2026

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A 53,000-square-foot medical office building in Watertown, Massachusetts has been acquired by JLL Income Property Trust for $32.15 million. The property, located at 485 Arsenal St., is fully leased to Atrius Health and includes offices for various medical services.

Why it matters

The sale reflects the growing demand for outpatient medical facilities in the Boston area, which is a global hub for life sciences and technology. As healthcare delivery shifts away from traditional hospital settings, investors are targeting well-leased medical office properties in desirable markets.

The details

The building was previously owned by Boylston Properties, the developer of the nearby Arsenal Yards mixed-use project. JLL Income Property Trust, a Chicago-based real estate investment trust, now owns the property as part of its strategy to acquire outpatient healthcare facilities in target markets. The building is 100% leased to Atrius Health and includes offices for internal medicine, pediatrics, OB/GYN, pharmacy, radiology, physical therapy, and dermatology.

  • The transaction closed on March 5, 2026.

The players

JLL Income Property Trust

A Chicago-based real estate investment trust that owns 25 healthcare properties worth an estimated $647 million.

Boylston Properties

The developer of the nearby Arsenal Yards mixed-use project in Watertown, Massachusetts.

Atrius Health

A healthcare provider that has a 15-year lease commitment for the entire 53,000-square-foot medical office building.

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What they’re saying

“This submarket is driven by consistent demand and impressive tenant rosters, emanating from Boston's academic center and status as a globally significant region for life sciences and technology. We have been witnessing a growing transition in healthcare delivery, favoring outpatient facilities over traditional hospital settings.”

— Allan Swaringen, CEO (JLL Income Property Trust)

The takeaway

The acquisition of this well-leased medical office building in Watertown highlights the growing investor interest in outpatient healthcare facilities, particularly in markets like Boston that are hubs for life sciences and technology. As the healthcare industry continues to shift towards more decentralized, outpatient-focused models, properties like this are expected to remain in high demand.