PHILADELPHIA, PA, Oct. 10, 2018 — Holliday Fenoglio Fowler, L.P. (HFF) announces that it has been named to market for sale the Lakeshore Medical Center, a five-story, 135,093-square-foot, on-campus medical office building (MOB) in Chicago, Illinois.
The HFF Healthcare Capital Markets group is marketing the property on behalf of Zeller Realty Group.
The five-story fee-simple, on-campus medical office building is named for its undisrupted views of Lake Michigan, and location along Lake Shore Drive; one of Chicago’s most recognizable thoroughfares. The property is physically connected to the 236-bed Weiss Memorial Hospital, which shares a three-story glass atrium and lower level patient concourse and is connected to an adjacent parking structure.
The offering represents one of the rarest value add, lease-to-core medical office opportunities in the country. The 38.9-percent-leased, on-campus MOB is affiliated with the most dominant hospital in the submarket, in a high-barrier-to-entry, urban, in-fill location along Chicago’s Lake Shore Drive, in one of the most highly sought-after cities in the nation. Following Weiss’ recent 10 year lease extension, the property boasts a weighted average remaining lease term of approximately 9.0 years, offering investors ample upside through lease-up of vacant space, concurrent with predictable in-place cash flow from a tenant roster that is 46.6 percent investment-grade rated.
“The property offers among the most valuable vacancy in the city with the largest contiguous blocks of space available,” Appel noted. “The current owner of Weiss Hospital, Tenet Healthcare is scheduled to conclude its sale of Weiss during 2018, which is expected to create lease-up opportunities at the Lakeshore Medical Center.”
The HFF investment advisory team representing the seller consists of senior director Ben Appel, managing director Evan Kovac, director Bryan Rosenberg and senior managing directors Jeffrey Bramson, Ryan Maconachy and Chad Lavender.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit www.hfflp.com or follow HFF on Twitter @HFF.
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