Transactions: CBRE Global Investors acquires final two MOBs of 27-building portfolio

9000 Wuakegan Road, Morton Grove, Ill.

GREATER CHICAGO – It looks as if Los Angeles-based CBRE Global Investment Partners (GIP) in September 2017 acquired the final two MOBs that are part of its larger purchase of a 95 percent interest in a 27-building portfolio from a joint venture (JV) of Los Angeles-based Kayne Anderson Real Estate Advisors and Chicago based MB Real Estate Healthcare.

In August, according to data from real estate researcher Real Capital Analytics (RCA) Inc., CBRE GIP closed on the purchase of 25 of the 27 properties from the Kayne Anderson/MB joint venture. The overall, 27-MOB deal, according to RCA, was for $590 million.

The September purchases comprise MOBs in Morton Grove and Glenview, Ill., abutting suburbs north of Chicago. In one of the purchases, CBRE GIP, an independently operated affiliate of CBRE Group Inc. (NYSE: CBG), acquired an MOB at 2350 Ravine Way in Glenview $17.9 million, or $297 per square foot (PSF).

In the other, the investor paid $38.7 million for an 86,503 square foot MOB, or $47 PSF, at 9000 Waukegan Road in Morton Grove.

The deal has Kayne Anderson and MB Real Estate retaining the remaining 5 percent ownership share of the portfolio. The JV is continuing to manage and operate the portfolio, which according to entities involved is 95 percent occupied, with key tenants including both national and regional healthcare systems along with a variety of specialists.

According to a news release from CBRE GIP, the investment “was made on behalf of clients of GIP and marks an expansion of GIP’s investment into the medical office sector.” The new ownership group says it plans to “continue to create value (in the portfolio) through leasing and repositioning, focusing on providing solutions to strengthen relationships with tenants.”


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